The Making Home Affordable Program

In order to qualify for HAFA, a home owner must meet the basic eligibility requirements for HAMP. They are:

  • The property is the borrowers principal residence.
  • The mortgage is a first lien originated before 01/01/09.
  • The mortgage is delinquent or default is reasonably foreseeable.
  • The current mortgage balance is $729,750.00 or less.
  • The borrowers monthly mortgage payment exceeds 31% of their monthly gross income.
  • If the borrower has mortgage insurance, the mortgage insurer must waive their rights to collect any deficiency.

If a borrower meets the following criteria, the participating servicer must give the borrower the option to participate in HAFA.

  • The borrower did not qualify for the HAMP trial period.
  • The borrower did not successfully complete the HAMP trial period.
  • The borrower is delinquent on their HAMP modification.
  • The borrowers requests a short sale or deed-in-lieu.

The good news for sellers who participate in HAFA:

  • The lender is required to forgive any deficiency.
  • The seller will get $1500.00 at close of escrow.
  • The short sale will be pre-approved and the listing price will be provided to the listing agent by the loan servicer.
  • The servicer will provide written approval within 10 days of receipt of an executed purchase contract.
  • The servicer will pay up to 3% to junior lien holders, but no more than $3000.00.

The good news for buyers:

  • The endless waiting for short sale approval will be eliminated.
  • Servicer will allow up to 45 days for close of escrow.

This program will take all the frustrating unknowns out of the short sale process.

The program provided $3000.00 for junior lien holders and requires them to give up their rights to pursue a deficiency. If a junior wants more than $3000.00 or refuses to give up their right to pursue, the borrower may not be able to obtain clear title as required. If there is more than one junior, $3000.00 may not be enough to satisfy them all.

If you would like to speak with one of our Financial Representatives, call 1.888.210.9838 now!