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On Monday, April 5, 2010, the Obama Administration and the U.S. Treasury Department officially activated the HAFA (Home Affordable Foreclosure Alternatives) program.  The Program - which took effect April 5^th -  offers financial  incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.  

·       Servicers (banks, lenders, etc) are prohibited from requiring a reduction in the real estate commission agreed on, which is up to 6 percent

With either the HAFA Short Sale or Deed-In-Lieu, the servicer may NOT require a cash contribution or promissory note from the borrower and MUST forfeit the ability to pursue a deficiency judgment against the borrower.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bona-fide offers, they must render a decision within 10 days.

HAFA simplifies and streamlines the Short Sale and Deed-In-Lieu process by providing a standard process flow, minimum performance timeframes and standard documentation.

In simpler terms, HAFA helps people quickly sell their homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. Investors and servicers can also receive financial assistance through the program for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules.

Short Sellers need to be prepared !!   click on this link to go to the HAFA Website

http://www.whatishafa.org/index.html