HAFA Effective Date Today April 5, 2010

The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or deed-in-lieu.

In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer – provided title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

The guidelines for HAFA are detailed further in the documents listed below.
Servicer Documents

Supplemental Directive 09-09 Revised: Home Affordable Foreclosure Alternatives Program GuidelinesGuidance to servicers for adoption and implementation of the Home Affordable Foreclosure Alternatives Program (HAFA), which is part of HAMP and provides financial incentives to servicers and borrowers who utilize a short sale or deed-in-lieu to avoid foreclosure on an eligible loan under HAMP.This document replaces previously issued Supplemental Directive 09-09 and incorporates the substance of Supplemental Documentation – Frequently Asked Questions in connection with the Home Affordable Foreclosure Alternatives Program posted to date.

  • Supplemental Directive 09-09 Revised
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    Last updated: March 26, 2010
  • Change Template: Supplemental Directive 09-09 Revised NEW
    This document tracks changes made in Supplemental Directive 09-09 Revised.
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HAFA Data Dictionary NEWThe catalogue of all data elements and associated metadata for the program, including the names, definitions, allowable values, and data types. It also defines the functional areas where the data elements are being used.Download Now

Borrower Documents

Source HampAdmin.com