HOME AFFORDABLE FORECLOSURE ALTERNATIVES (HAFA)

UPDATES AND EXTENSION: EFFECTIVE JUNE 1, 2012

The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure.

As of February 1, 2011 Deadline Extension Occupancy Requirements Relocation Assistance

Deadline was Dec. 31, 2012.

Change as of June 1, 2012

Deadline is Dec. 31, 2013. There are now no occupancy requirements and borrower cannot have purchased a residential property in previous 12 months.

Homeowners must have lived in the property within the previous 12 months.

$3,000 granted to homeowners after $3,000 relocation incentives are limited to completion of short sale or deed-in-lieu. owner or tenant occupied properties at the time of short sale. Mortgage payments on loans may not exceed 31% of the homeowners gross monthly income. Mortgage payments may now be allowed to exceed 31% of gross monthly income if it keeps the homeowner current on their mortgage (at borrowers request). Secondary Lienholders may now receive a maximum of $8,500. Credit Bureau Reporting will now be Account Status Code = 13 (Paid or closed account/zero balance) or 65 (Account paid in full/a foreclosure was started) as applicable.

Mortgage Payments and Debt/Income Ratio

Secondary Lienholders

Secondary Lienholders may receive a maximum of $6,000.

Credit Bureau Reporting

No offiial credit bureau coding.

New policies effective: June 1, 2012 Retroactivity: Servicers not required to, but may reevaluate borrowers formerly ineligible. Source: United States Treasury Department Expanding our Efforts to Help More Homeowners and Strengthen Hard-hit Communities.

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