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By Social Media | Broker in Los Angeles, CA

How HAFA Works For Distressed Homeowners


The Home Affordable Foreclosure Alternative is available to homeowners in trouble only after a borrower has been evaluated for a HAMP modification. What is a HAMP modification you ask? HAMP stands for Home Affordable Modification Program designed to aid borrower’s that meet certain requirements. It helps borrower’s dodge the bullet of foreclosure by modifying loans to a level that is affordable and sustainable for borrowers.

A loan qualifies if it is the borrower’s principle residence or if the property has been vacant up to 90 days before the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (RASS) or DIL Agreement. The borrower must provides proof that they were required to move at least 100 miles from the property to accept a new job or job transfer by their current employer. Finally, there must be no evidence indicating the borrower has purchased a 1-4 unit property prior to the date of the SSA, Alternative RASS or DIL Agreement

  • The mortgage loan is a first lien mortgage originated on or before Jan. 1, 2009
  • The mortgage is delinquent or default is imminent
  • The current unpaid principal balance is equal to or less than $729,750
  • The borrower’s total monthly mortgage payment exceeds 31% of their gross income

If you are in an active Chapter 7 or Chapter 13 Bankruptcy you must be given consideration for HAFA if you, your attorney or the bankruptcy trustee requests it from the servicer. As a bonus, you will receive a relocation incentive of $3000. Not a lot of money but if you can no longer pay your mortgage, every little bit helps

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