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What is HAFA?

by Charlie Allred

There has been a lot of acronyms batted around the real estate world and one of the most important ones, in my opinion, is HAFA, the Home Affordable Foreclosure Alternative program.

This is a new government program that was implemented to help a certain portion of distressed homeowners avoid foreclosure by allowing a short sale of their home without any negative consequences to the homeowner.

While on paper this program seems to be a perfect solution to the housing crisis: decreasing the number of foreclosures, streamlining the short sale process, and standardizing the forms used by all participating mortgage servicers, in my opinion it is really only a first step in really fixing or better stated reversing the housing issues facing Arizona and the rest of the country.

For those who qualify, the criteria which will be discussed in another post, this is a really great option.  You get 120 days to short sell, with the option of renewing the listing for one year if needed.  The entire time you are in the program the servicer will not foreclose on your home.  Another benefit is the fact that the servicer and investor of your mortgage are accepting FULL satisfaction in the short payoff.  Therefore, there can be no deficiency judgment or promissory note asked of the homeowner.  This is the true selling point for HAFA.

Make sure that if you are struggling to pay your mortgage and you have already decided against modification, ask your Realtor® about HAFA and if it may be right for you.  The homeowner has to be fully responsible for the enrollment in the program, but your Realtor® should know enough to guide you through the process.

Contact Arizona Short Sale Tips for more information and for tips on your specific situation.

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