Monday, January 2, 2012


Is the Home Affordable Foreclosure Alternatives program right for me?

Program goal

The Home Affordable Foreclosure Alternatives (HAFA) program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure.

The goal of this program is to help you sell your home in a short sale and settle your mortgage debt if you owe more on your mortgage than your house is worth and are unable to qualify for a home loan assistance program.

This federal government program streamlines the short sale approval process and offers financial assistance to help you with relocation.


You may be eligible for the Home Affordable Foreclosure Alternatives program if:
the property is your current principal residence, OR the property has been vacant or rented out for less than 12 months, and you have not bought another principal residence during that time.
the amount you owe on your first mortgage for your property is equal to or less than:
  • $729,750 for 1 unit
  • $934,200 for 2 units
  • $1,129,250 for 3 units
  • $1,403,400 for 4 units
  • you owe more on your home than it’s worth
  • your current mortgage was taken out on or before January 1, 2009
  • you are experiencing a hardship (such as a job loss, divorce or medical emergency) and are unable to afford your current home loan
While a short sale will still have a negative effect on your credit, it generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter. As a result, your credit may improve faster. If a short sale is completed on your property, we will report that your loan was "paid in full for less than the full balance."

You should only consider a short sale after you've explored all other options, including modifying your loan. You should contact a tax professional to gain an understanding of any tax implications.
If your loan is not owned by Fannie Mae or Freddie Mac, program requirements and eligibility may vary.

To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below.

1.800.7FANNIE     1.800.FREDDIE

Program at a glance
  1. Call icon
    Step 1: Call us to request a HAFA short sale and update us on your current financial situation. We’ll review your information and check your eligibility for a Home Affordable Modification or any other home retention program that would enable you to stay in your home.
  2. Approval icon
    Step 2: If you don’t qualify for a modification and want to sell your home, we’ll work to gain approval of your first mortgage HAFA short sale request. If you have a second mortgage with another lender, you will have to ask them for approval.
  3. Market icon
    Step 3: You will be given time to market and sell your home — typically 120 calendar days. You are required to work with a licensed real estate professional.
  4. Offer icon
    Step 4: Once you receive an offer, you have 3 calendar days to submit a Request for Approval of a Short Sale document as well as the offer letter. We’ll get back to you with a decision on the offer within 10 business days.
  5. Closing icon
    Step 5: If the offer is accepted, your house is sold and your mortgage and any other loans against the home are settled from the proceeds of the sale.
    Bank of America   1.866.880.1232

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