- LEARNING CENTER
The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or DIL.
In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer - provided the title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, 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.
HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.
The guidelines for HAFA are detailed further in the documents listed below.
MHA Handbook and Guidance
The MHA Handbook is a consolidated reference guide outlining the requirements and guidelines for the Making Home Affordable (MHA) Program for non-GSE mortgages. The current version of the MHA Handbook replaces and supersedes all effective guidance contained in Supplemental Directives (SDs) and related frequently asked questions (FAQs); to the extent guidance is not effective as of the date of the of the current version of the MHA Handbook such guidance is not replaced and superseded. Previous SDs can now be found in the Archives tab on the Program Guidance page.
Making Home Affordable Handbook v4.5 - The MHA Handbook will be updated periodically to include additional guidance on related programs.
Access the MHA Handbook on AllRegs - Open to subscribing and non-subscribing AllRegs customers.
Please note: There may be a time delay for new MHA Handbook publication updates to appear in the AllRegs Library.
This matrix provides a summary of servicer, investor, and borrower compensation by program. Frequency, payee/beneficiary, amounts, and timing are provided, as well as the data attributes used for each calculation.
For a complete listing of all MHA-related rulings, please visit the IRS website.