What is the Home Affordable Foreclosure Alternatives Program?

The Home Affordable Foreclosure Alternatives Program (HAFA) is a program created by the Oregon Department of Banking and Finance to help homeowners who are facing foreclosure. It was created to provide alternatives to foreclosure, such as a deed-in-lieu of foreclosure or a short sale. A deed-in-lieu of foreclosure is when the homeowner voluntarily transfers ownership of the home back to the lender in exchange for the forgiveness of any remaining debt or obligation owed. This allows the homeowner to avoid going through foreclosure. A short sale is when the homeowner sells the home for less than the amount owed on the mortgage. The lender agrees to accept less than the full amount owed in order to avoid foreclosure. The lender can use the proceeds from the sale to pay off the debt. This allows the homeowner to avoid foreclosure and potentially receive some of the proceeds from the sale. HAFA provides financial incentives to lenders and homeowners who participate in the program. The incentives include a release of liability for the homeowner after the deed-in-lieu or short sale is completed, a $1,500 incentive for the homeowner to cover moving costs, and pre-approved terms for the short sale. The program also requires lenders to provide a single point of contact for the borrower’s loan servicer if the borrower is struggling to meet their mortgage payment obligations. The Home Affordable Foreclosure Alternatives Program is designed to help Oregon homeowners facing foreclosure to find an alternative solution that is beneficial for both the homeowner and lender.

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What is the Home Affordable Foreclosure Alternatives Program?

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