Most homeowners facing financial hardship are eligible for a HAFA (Affordable Foreclosure Alternatives Program). As a rule, if a homeowner is eligible for HAMP (Home Affordable Modification Program) but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. Your real estate agent can request a HAFA short sale on your behalf.

For a loan to qualify, it must meet the following criteria:

• The property is the borrower’s principal residence

• The mortgage loan is a first lien mortgage originated on or before January 1, 2009

• The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac

• The mortgage is delinquent or default is reasonably foreseeable

• The current unpaid principal balance is equal to or less than $729,750

• The borrower’s total monthly mortgage payment exceeds 31 percent of the borrower’s gross income (as defined in HAMP Supplemental Directive 09-01)

For more information on foreclosure alternatives, please contact us today.