San Diego HAFA

Certified HAFA Specialist, San Diego, California

San Diego HAFA (Home Affordable Foreclosure Alternatives) Program

Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe.

These options are available for homeowners who:
1. do not qualify for a trial mortgage modification under the Home Affordable Modification Program (HAMP);
2. do not successfully complete the trial period for their modification;
3. miss at least two consecutive payments during their modification period; or
4. request a short sale or deed-in-lieu of foreclosure.

How Can HAFA Benefit Distressed Borrowers?
By enabling a supported home transition while avoiding the stigma of foreclosure.

Borrowers availing of HAFA Short Sale or Deed in Lieu avoid involuntary foreclosure and the associated negative impact

	Foreclosure can be emotionally harmful for borrower and family
	Borrower's debt is eliminated
	HAFA mandates forgiveness of all liability for repayment of both first and second lien holders

Borrower receives some financial support to help with relocation

Borrower includes a standard $3000 relocation payment to borrower at transaction closing

Current lending guidelines allow second chance at homeownership more quickly for those pursuing foreclosure alternatives

	Lending systems favors those who proactively address their problems
	Borrowers may be able to buy again by re-establishing a credit history as soon as 2 years after Short Sale vs. 4-5 years after involuntary foreclosure (but only 3 years if borrower has extenuating circumstances) under current Fannie Mae guidelines

Short Sale

In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage.

Deed-in-Lieu of Foreclosure

Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances.

The HAFA Program streamlines both of these options to make them easier for a homeowner to work with their servicer. Under the program, a homeowner can receive $3,000 to help with relocation costs.

Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer. If you have questions about the program, or want guidance about how these options may impact your personal situation, you may wish to speak to us for free.

Your Graceful Exit
Watch a video to learn more about the Home Affordable Foreclosure Alternatives Program.

Making Home Affordable and Other Options to Remain in Your Home

Mortgage servicers who participate in the Making Home Affordable Program (HAMP) are required to evaluate homeowners for a Home Affordable Modification before evaluating them for other options. If you request a modification from your mortgage servicer, and are determined to be eligible, you will enter into a trial period plan.

If it is determined that you are not eligible for a Home Affordable Modification, your mortgage servicer will evaluate you for other alternatives they offer to keep you in your home, such as their own modification programs or a forbearance.

Avoid Foreclosure: Know Your Options
Watch a video to learn more about the Making Home Affordable Program and other options your mortgage servicer may provide.

For more details on the HAFA Program, please click here.

Source: MakingHomeAffordable.gov

Our Certified HAFA Specialist is ready to answer any of your questions. Find out all your options by giving us a call, send a Text Message or for a FREE, no obligation consultation.

(619) 890-7447 or

NOTICE: The information provided is for general reference only and is not to be construed as tax or legal advice. Consult your income tax preparer and/or attorney for specific details regarding your individual situation.