In early 2009, the National Association of REALTORS® (NAR) urged the U.S. Treasury Department, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac to improve the short sales process. NAR’s concerns were first addressed on May 14, 2009, when the Obama Administration announced the outline of a program to provide incentives and uniformed procedures for short sales or deeds-in-lieu (DIL) of foreclosure under the Making Home Affordable Program.

Finally, on November 30, 2009, the Obama Administration released guidelines and uniform forms for its Home Affordable Foreclosure Alternatives Program (HAFA). Modified HAFA rules for loans owned or guaranteed by Fannie Mae or Freddie Mac will be issued in coming weeks. HAFA does not apply to FHA or VA loans. Read More…

The HAFA program Complements President Barak Obama’s Home Affordable Modification Program (HAMP) by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home. HAFA allows borrowers to receive pre-approved short sales terms before listing the property including the minimum acceptable net proceeds. Requires borrowers to be fully released from future liability for the first mortgage debt and, if the subordinate lien holder receives an incentive under HAFA, that debt as well (no cash contribution, promissory note, or deficiency judgment is allowed). HAFA also provides financial incentives for the home owner as well. Read More…

The program begins on April 5th 2010…

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