What is HAFA?

If you cannot afford your mortgage payment and it’s time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a Short Sale or Deed-in- Lieu (DIL) of foreclosure. In a Short Sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them. Short Sales and a Deed-in- Lieu are dignified solutions to foreclosure and the government is now making them easier, quicker and more accessible.


HAFA helps homeowners quickly sell their property by giving them pre-approved Short Sale terms before listing their house. The homeowner is fully released from future liability for the first mortgage debt and can receive up to $10,000 for relocation assistance. Borrowers are fully released from future liability for the first mortgage debt within 10 business days from the date the servicer receives the sale proceeds, which means that no promissory note, deficiency judgment or cash contribution is needed. Like any other loan modification, all standard processes, documents and timeframes apply.


Unfortunately, HAFA does not speed up the documentation and disclosures collection process. The Andora Group and the homeowner are still responsible for gathering all the documentation needed to get the Short Sale approved. The clock for approving the Short Sale transaction does not begin until all of the documentation has been received and approved by the lender. In addition, lender’s participation in HAFA is optional, so even if you qualify your lender may not offer the program to you.


While the HAFA may seem like the simple solution you seek, the process is lengthy and complicated. At The Andora Group, we have carefully studied the HAFA guidelines and regulations in depth. We can tell you if you would qualify for the HAFA program, saving you time from having to go through the approval process. For more information, please contact us and we’ll be back in touch shortly.