Home Affordable Foreclosure Alternatives (HAFA) Program

What is Home Affordable Foreclosure Alternatives (HAFA) Program?

Enacted: April, 2010 – effective for mortgages originated on or prior to January 1, 2009

Home Affordable Foreclosure Alternatives (HAFA) Program is designed to help homeowners who can’t afford current mortgage payments and would like to move to more affordable housing.

The HAFA can help homeowners in financial difficulty by providing them with two options for transitioning out of their mortgage.

The first option is a short sale of the home. In this case the mortgage company lets the homeowners sell their house for less than the outstanding mortgage loan. In other words the borrower is allowed to sell short of the amount that is owed to the lender.

The second option HAFA provides is so called Deed-in-Lieu (DIL) of foreclosure. In a DIL, the mortgage company allows the homeowner to transfer the home ownership back to the mortgage company by giving them back the title.

Purpose of Home Affordable Foreclosure Alternatives (HAFA) Program

To release homeowners in financial hardship from future liability of their current mortgage debt.

Goal of HAFA

To help distressed homeowners to transition to more affordable housing.

Who may be eligible?

All homeowners in financial hardship who:

  • Are delinquent or in danger of falling behind on their mortgage payments
  • Hold mortgage loans originated on or before January 1, 2009
  • Owe up to $729,750 on their primary residence
  • Have not purchased a new house within the last 12 months
  • Have not been convicted in the last 10 years of felony, larceny, theft, fraud or forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction
Contact your mortgage company for details to see if you are eligible.

How to apply?

Call a HUD-approved housing counselor at: 888-995-4673  (Hearing impaired: 877-304-9709 TTY) to help you understand your options, prepare your application, and work with your mortgage company.