Home Affordable Foreclosure Alternatives Program




Why The HAFA Program Is Important?

The HAFA short sale program is a very important program because it's a great alternative to foreclosures. This is much needed because of the current state of the housing market. The United States is experiencing one of the worst economic downturns of all-time, and much of it occurred because of the real estate industry. There are a record amount of houses and condos in foreclosure, and many more are expected to be filed as time goes on.

The HAFA program is important because it's sponsored by the federal government, with the common goal of helping homeowners. Utitlizing the HAFA program is much better than a foreclosure because it does not affect one’s credit report as adversely. For the same reason, it's better for a borrower to take advantage of HAFA - opposed to filing bankruptcy.

A short sale is a very smart move for both the
lender and the borrower because the home will
maintain it's value better when occupied and the
borrower gets to reduce their debt load.


The program also includes several financial incentives
including $ 1,500 to go towards the borrower's
relocation cost. Servicers can receive $ 1,000 to
help their administrative and processing cost.
Investors get up to $ 1,000 for allowing a total up to $ 3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).


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Video: New Short Sale rules under the new HAFA program.