What is a HAFA short sale?
A: HAFA stands for Home Affordable Foreclosure Alternative Program. HAFA is a program of the Department of the Treasury & Housing and Urban Development which is administered through your participating lender. The benefits of applying for a HAFA short sale are: a.) Possible cash incentive, up to $3,000; b.) Waiver of the lender’s right to pursue for a defiency. The lender must be a participant in the program. Most of the big banks (Bank of America, Wells Fargo, Chase, etc) are, however lenders like M & I Bank and Flagstar are not.
Tania Michaels is a CDPE agent in Las Vegas, NV.
More on HAFA Short Sale Rules.