Short Sale Specialist Network "Preventing Foreclosures One Home at a Time"


California HAFA -
          Home Affordable Foreclosure Alternatives  

How To Short Sale A Home

 On November 30th, 2009, as part of the Making Home Affordable plan, President Obama's administration announced new incentives for lenders in regards to homeowners in the middle of financial hardship. These new lender guidelines and incentives are set by the U.S. Treasury. This new program offers renewed hope to homeowners in crisis by streamlining the short sale process, and potentially stabilizing the housing market in California and across the U.S.


The Home Affordable Foreclosure Alternatives program took effect on April 5, 2010 and offers lenders, borrowers, and servicers financial incentives to work with short sales or offer Deed-in-Lieu of foreclosure to their borrowers. The program limits the response time from the lender and also requires that they waive their right to pursue a deficiency judgment.



  • The loan must be the first mortgage
  • The property must be the borrower's primary residence
  • The borrowr must either be in default already or can foresee default in the near future
  • The loan must have originated before January 1, 2009
  • The unpaid balance must be less than or equal to $729,750
  • The total mortgage payment per month must be more than 31% of the borrower's gross income



 Financial incentives for completing these short sales or a deed-in-lieu of foreclosure (in which the deed is transferred to the lender) include $1,500 to the loan servicers, and a maximum of $2,000 to go to investors who sign off on payments to second position lien holders. For every three dollars spent to release junion liens, investors are given one dollar; up to 6% with the amount cap at $6,000. In addition to having their debt fully forgiven, borrowers would receive $3,000 in relocation expenses, which is deducted from the sale proceeds at closing. This is excellent news for California homeowners in financial hardship.

The HAFA Program is an option to homeowners who:

(A) do not qualify for a trial loan modification

(B) do not complete the trial modification successfully

(C) miss two or more consecutive payments during a trial modification

(D) request a deed-in-lieu of foreclosure or short sale


Give us a call to discuss the specifics for this program today, including the $3,000 back for relocation expenses, if you do a short sale on your California home. In addition, all of the agents within our network are California HAFA Program trained specialists.


California HAFA Short Sale Program Forms:

HAFA Short Sale Agreement (SSA)

HAFA Request for Approval of Short Sale (RASS)

HAFA Alternative Request for Approval of Short Sale

HAFA Deed in Lieu for Foreclosure Agreement

HAFA Data Dictionary

HAFA Form 4506-T Request for Transcript of Tax Return

HAFA Hardship Affidavit

HAFA Request for Modification and Affidavit (RMA)

  Need a HAFA Program Specialist Certified to offer California Short Sales Help? Contact us to speak to a local California HAFA program Real Estate Agent toTalk about the CA short sale process and our no cost services. Get $3,000 Cash Back with HAFA Government Short Sale Program!

Need a California Distressed Property Expert Certified in short sales to offer free Chase short sale services? Our California area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the California Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.


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First Coast Realty Associates

California Short Sales


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