What is HAFA?

What is HAFA?

What is HAFA?

A program the federal government implemented in May 2009 to assist homeowners who are unable to pay their mortgage and keep their home under the Home Affordable Modification Program (HAMP).
A borrower (the current owner) may be able to avoid a foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL) under HAFA.
The guidance and forms released on November 30 do not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac. Those enterprises will issue their own HAFA guidance and forms.
Who is eligible?
The homeowner/borrower must meet the basic eligibility criteria for HAMP:
Principal residence.                                                                                                                    
First lien originated before 2009.                                                                                     
Delinquent Mortgage or default is reasonably foreseeable.                                               
 Unpaid principal balance no more than $729,750 (higher limits for 2 to 4 unit dwellings).
Homeowner’s/borrower’s total monthly payment exceeds 31% of gross income.