What is the Home Affordable Foreclosure Alternatives Program?

The Home Affordable Foreclosure Alternatives (HAFA) Program is a North Carolina banking law program designed to help struggling homeowners avoid foreclosure. It provides two alternative options to foreclosure, including a short sale and a deed-in-lieu of foreclosure. Under a short sale, lenders agree to accept payment less than the amount owed on the mortgage, typically in return for allowing the home to be sold for its current market value. The deed-in-lieu of foreclosure agreement is when a homeowner gives the bank or mortgage company the title or deed to the property, and in return the bank agrees to forgive the remaining loan balance. The HAFA program is available to homeowners who have experienced a financial hardship, such as a job loss, reduction in income, or medical expenses, and who are not eligible for loan modification under the Making Home Affordable Program. To qualify, the mortgage must have been originated on or before January 1, 2009, and must be owned or guaranteed by Fannie Mae or Freddie Mac. The program also offers financial assistance to homeowners who participate in a short sale. They are eligible for $3,000 in assistance and up to $1,500 for relocation expenses. In addition, participating servicers are also eligible for up to $2,000 for each successfully completed HAFA transaction. Overall, the HAFA Program is a great option for those struggling to make their mortgage payments and looking to avoid foreclosure. It can help homeowners meet their financial obligations and allow them to move on with their lives.

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What is the Home Affordable Foreclosure Alternatives Program?

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