What is the Home Affordable Foreclosure Alternatives Program?

The Home Affordable Foreclosure Alternatives Program (HAFA) is a federal program in Kansas created to help homeowners who are facing foreclosure. HAFA assists borrowers who are unable to keep up with their mortgage payments in order to avoid foreclosure. It provides a structured alternative to foreclosure proceedings that can be beneficial to both the homeowner and lender. Under HAFA, borrowers can either negotiate a short sale or a deed-in-lieu of foreclosure with their lender. A short sale is when a lender agrees to release the lien in exchange for a payment of less than the full amount on the mortgage. A deed-in-lieu of foreclosure involves the homeowner voluntarily transferring the title of the property to the lender. Once a borrower is approved for HAFA, they are eligible to receive up to $10,000 in relocation assistance to help with expenses from the foreclosure. It also helps with additional expenses such as loan modification fees and other costs related to the transaction. HAFA is available to eligible borrowers who are experiencing a financial hardship, have a loan owned by Fannie Mae or Freddie Mac, and have not been able to get approved for a loan modification or other alternative. Borrowers should contact their lender to find out more about HAFA and the assistance it can provide.

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What is the Home Affordable Foreclosure Alternatives Program?

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