What Is the Home Affordable Foreclosure Alternatives Program (HAFA)?

The Home Affordable Foreclosure Alternatives (HAFA) Program was put into place by President Obama in order to assist distressed homeowners. Here are the basics of HAFA.

Home Affordable Foreclosure Alternatives Program

This program is designed to provide you with an alternative if you cannot keep your home through the Home Affordable Modification Program. In order to qualify for this program, you must be eligible for HAMP. This means that you meet certain income requirements and your monthly mortgage payment is above 31 percent of your income. This program provides incentives to go through with a deed in lieu of foreclosure or a short sale. Therefore, this program is reserved for those that have substantial financial needs related to their mortgages.

Benefits

This program can provide you with a few benefits. If you are going to do a short sale, you will be able to get pre-approved short sale terms from your lender before listing the property. Many times, you have to go through the short sale process and then wonder whether the bank will approve it. This is not the case with this program.

You can also receive financial incentives as well. For example, you can get $1500 worth of borrower relocation assistance as well as $1000 to cover administrative costs associated with the process.