HAFA is the Federal Governement's Home Affordable Foreclosure Alternatives Program which provides incentives to sellers and lenders to participate in a short sale. There are a variety of factors to qualify, but basic eligibility requires the property to be the principal residence, mortgage delinquent or default is reasonably foreseeable, an unpaid principal balance of no more than $729,750, and the borrower's month payment exceeds 31% of gross income.

If a seller qualifies under HAFA, there are time requirements the loan servicer must follow. The servicer must consider sellers for eligibility within 30 days of seller requesting a short sale. The seller only has 14 days to sign and return the Short Sale Agreement (SSA) to the servicer. The real estate broker must also sign the SSA The servicer must give the seller at least 120 days to sell the property. Once an offer is accepted, the servicer has 10 business days to approve or deny the sale. If the sale is approved, they servicer must provide at least 45 days for closing.

These time restrictions greatly increase the chance of success in the short sale process. Buyers don't have to wait months for approval, which greatly improves the chance that the transaction will be successful. There is still no guarantee that the short sale will be successful, nor will all sellers qualify for HAFA, but it provides additional options for homeowners.

We can assist with the entire HAFA process, please contact us immediately if you are considering a short sale. There are time restrictions for the seller that must be followed.

https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.jsp  Link for more information