Home Affordable Foreclosure Alternative (HAFA)
Deed in Lieu of Foreclosure
First thing you need to know is that the ‘Home Affordable Foreclosure Alternative’ is an additional element to the making home affordable program that offers alternative foreclosure avoidance options. These options come in the form of a Short Sale option and a Deed in Lieu of Foreclosure option.
Home Affordable Foreclosure Alternative via a Short Sale
This is where your property is sold for less than the value of the outstanding amount left on your mortgage. In other words once the property is sold you would normally still have an amount of money left owing which you would still need to pay. But in the HAFA program this amount is written off by the lender so you never have to pay the outstanding amount. This is providing the lender agrees to the sale terms prior to putting the house on the market.
