We help homeowners prevent foreclosure by participating in the Home Affordable Foreclosure Alternatives Program (HAFA)
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(Serving the Entire HEB /Arlington/Dallas/Fort Worth Metroplex)
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“Don't Worry, We Are The Team You Can Rely On When You Need To Stop Foreclosure Now.”
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See Below for more Home Affordable Modification Program.
HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP is available at MakingHomeAffordable.gov
About HAFA & The Time Frame
HAFA, which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), provide’s incentives in connection with short sales and deeds-in-lieu of foreclosure.
The program:
- Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
- Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable amount net proceeds).
- Prohibits the servicers/mortgage company from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).
- Requires borrowers to be fully released from future liability for the first mortgage debt and, if the 2nd lien holder receive’s an incentive under HAFA, that debt as well as (no cash contribution, promissory note or deficiency judgment is allowed).
If a servicer has not already discussed a short sale or Deed in Lieu with the homeowner/borrower, it must notify the borrower in writing of these options and give the borrower 14 calendar days to respond, orally or in writing.
If the borrower does not respond, that ends the servicer’s duty to give a HAFA offer.
Servicers must consider HAMP eligible borrowers for HAFA within 30 days after the borrower does at least one of the following:
- Does not qualify for a HAMP/modification trial period plan
- Does not successfully complete a HAMP trial period plan
- Is delinquent on a HAMP modification (misses at least two consecutive payments)
Requests a short sale or DIL Within three business days of receiving an executed purchase offer, the borrower (or their real estate agent) must submit a completed Request for Approval of Short Sale (RASS) to the servicer, including:
- A copy of the sale contract and all addenda
- Buyer documentation of funds or pre-approval/commitment letter from a lender
- All information on the status of subordinate liens and/or negotiations with subordinate lien holders
Within 10 business days after the servicer receives the RASS and all required attachments, the servicer must approve or deny the request and advise the borrower.
The borrower has 14 calendar days from the date of the Short Sale Agreement (SSA) to sign and return it to the servicer. The SSA must give the borrower an initial period of 120 days to sell the house (extensions permitted up to a total of 12 months).
The servicer may require the closing to take place within a reasonable period after it approves the RASS, but not sooner than 45 days from the date of the sales contract unless the borrower agrees.
The servicer must release its first mortgage lien within 10 business days (or earlier if required by state
or local law) after receipt of sales proceed from a short sale or delivery of the deed in the case of a DIL. Investor must waive rights to seek deficiency judgments and cannot require a promissory note for any deficiency.
