Who is Eligible for HAFA

Who is Eligible for HAFA?

Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria1:

• Does not qualify for a HAMP Trial Period Plan
• Does not successfully complete a HAMP Trial Period Plan
• Is delinquent on a HAMP modification by missing at least two consecutive payments
• Requests a short sale or deed-in-lieu2

For a loan to qualify, it must meet the following criteria:

• The property is the borrower's principal residence
• The mortgage loan is a first lien mortgage originated on or before January 1, 2009
• The mortgage is delinquent or default is reasonably foreseeable
• The current unpaid principal balance is equal to or less than $729,750
• The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income (as defined in HAMP Supplemental Directive 09-013)
• The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac4

Sources:

1. Making Home Affordable. Supplemental Directive 09-09 Revised "HAFA Consideration" p. 4 (2010): https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
   • Updated: March 26, 2010
2. Ibid.
3. Making Home Affordable. Supplemental Directive 09-01 (2009): https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0901.pdf
4. Making Home Affordable. Supplemental Directive 09-09 Revised "HAFA Consideration" p. 4 (2010): https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
   • Updated: March 26, 2010