I agree with Kenny, it is unusual to get denied for the HAFA program. If you have already received short sale approval through Chase, I would contact your negotiator at Chase to discuss your HAFA application to make sure you completed it correctly.
If you have not selected a Realtor to list your home for the short sale, I hope you would consider calling me! I can meet with you any day this week in the morning or evening hours. I just sold a Chase short sale in the 93308 zip code and it was one of the easiest transactions I've had!!
I look forward to hearing from you, my number is below if you'd like to call.
If the property is your principal residence, the loan amount is less than $729,000, and the loan was originated prior to January 2009, and you can demonstrate hardship, that's pretty much all you need to satisfy.
This is the first I've heard that someone was denied HAFA due to unfavorable credit report. I'm not aware that the short sale lender would even look at your credit report. If they are going to, it is not to find out if you qualify for a loan.
I really can't think of anything. The only thing that might remotely be an issue is if your credit score is say 800 and you are trying to explain them you have actual hardship. Still, that is unusual.