What is HAFA?

The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales and or deeds-in-lieu of foreclosure.  The program is effective date is April 5, 2010 for participating lenders.

HAFA directs lenders to assist eligible homeowners in quickly and effectively implementing short sales by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines set forth in Supplemental Directive 09-09 Revised (revised March 26, 2010).  The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures.  HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.  These organizations may have plans to release their own versions of HAFA.

Source: Distressed Property Institute, LLC

If you'd like to discuss your scenario with Kevin Nakano, CDPE, please complete the online form and Kevin Nakano will follow up with you within one business day..

Back to HAFA home, click here.