Home Affordable Foreclosure (HAFA) is designed to streamline short sales by providing a uniform process and standard forms, as well as incentives for families and their mortgage servicers to complete the process. It offers homeowners who sell their homes under HAFA $3,000 to help cover their moving costs. HAFA may be able to help you through the difficult process of selling your home and moving to another home.
There are some eligibility requirements:
- The property must be your primary residence.
- The first lien (your first loan on your home) must have been originated before January 1, 2009.
- The mortgage must be delinquent or default must be reasonably foreseeable.
- The current unpaid principal balance may not be more than $729,750 (there are higher limits for 2- to 4-unit dwellings).
- Your total monthly payment must exceed 31% of your gross income.
If you do qualify there are benefits:
- HAFA streamlines the short sales and DIL processes to make it easier for you to work with the servicer.
- You receive a check for $3,000 at closing to help with your moving costs.
- You will be fully released from future liability for your first mortgage debt (no cash contribution, promissory note or deficiency judgment is allowed). Also, any junior lien holder who accepts a HAFA incentive must also release you from future liability.
You can learn more from a informative brochure created by The National Association of Realtors.
Submitted by Minnesota Realtor, Mary Rugani.