HAFA provides standard process, documents, timelines, and incentives to servicers, borrowers, and investors to enable short sale and deed-in-lieu of foreclosure.

Starting from April 5, 2010 until December 31, 2012, servicers participating in Home Affordable Modification Program (HAMP) must implement HAFA and eligible borrowers unable to complete HAMP must be considered for HAFA options before foreclosure.

HAFA helps borrowers to receive Pre-approval short sales terms before listing their property for sale with the help of a Real Estate Agent.

Requirement for HAFA is similar to HAMP and borrower's financial and hardship information already collected under HAMP will be used:
1. The property is the borrower's main residence
2. The mortgage loan is a first lien mortgage originate on or before January 1, 2009
3. The mortgage is delinquent or default is reasonably foreseeable
4. The current unpaid principal balance is equal to or less than $729,750 for one unit properties.
5. The borrower's total monthly morgage payment exceeds 31% of the borrower's gross income.

Additional borrower requirement includes:
1. Borroweres must be fully released from future liability for the first mortgage debt
2. Provide clear and marketable title and maintain the property in good condition for the duration of the
    Short Sale Agreement

For more detail or any question regarding the HAFA program, please contact Ruth Biafora at 818-601-5765