Alternatives Program (HAFA)
The federal government's Making Home Affordable program has new benefits for homeowners who are no longer able to pay their mortgage payments but want to avoid foreclosure.
Selling the home for less than you owe through HAFA
If you owe more on your mortgage than your home is worth and are unable to keep up with your mortgage payments, selling the home for less than you owe through the HAFA program could:
- Help you avoid foreclosure
- Allow you to be fully released from any further liability on your mortgage lien(s)
- Provide financial assistance to help with relocation expenses for the resident of the property
You'll be allowed 120 days to list and sell the property under the HAFA program. No foreclosure sale can take place during the marketing period specified in the Short Sale Notice as long as you are acting in good faith to sell the property. However, your foreclosure process may continue while your home is listed for sale.
To qualify to sell the home for less than you owe through HAFA, you must meet the eligibility criteria. View the HAFA program details on the HAFA Eligibility Matrix (PDF) Opens PDF.
How is the HAFA program different than a regular sale?
HAFA is part of the Making Home Affordable program. This program will simplify and speed up the sale process, as well as offer homeowners additional financial assistance.
If I have already sent in my application for mortgage assistance, do I have to complete additional paperwork to see if I am eligible for the HAFA program?
If you've already sent in your application for mortgage assistance, you don't have to send us any other information to be considered for the HAFA program at this time.
Once we have all the documentation we need to review your application, we'll let you know which options you're eligible for within 30 days. If you're eligible, and selling the home for less than you owe on your mortgage is right for you, you'll need to send us additional information about the sale of your home.
What if I don't qualify under HAFA but am interested in selling the home for less than I owe?
If you don't meet the HAFA eligibility criteria (PDF) Opens PDF, you may still be able to work with us to sell the home for less than you owe. Find out more by reading frequently asked questions and send your application for mortgage assistance to find out the options you're eligible for and the next steps you'll need to take.
How is the value of my property determined?
Your property value may be based on either an appraisal or one or more Broker Price Opinions completed within 120 days of your request to sell the home for less than you owe.
Can I select my own real estate agent?
Yes, you can choose your real estate agent. If you need help choosing a real estate agent, we can help you find an agent who has experience working with mortgage companies. We'll work with you and your real estate agent throughout the sale process to make it as easy as possible.
Is there a fee to participate in HAFA?
No, there is no fee to sell the home for less than you owe under the HAFA program.
How long will the government HAFA program be offered?
This program will accept eligible borrowers until December 31, 2015.