HAFA Explained in just 2:30 Minutes
- First Introduced: November 30, 2009
- Active On: April 5, 2010
- Overseen By: US Treasury Department
- Offers cash incentive of $3,000 to Homeowners
- Administered By: Fannie Mae
- Regulated By: Freddie Mac
- Executed By: Participating lending institutions via Fannie Mae
- Participating Program(s): Home Affordable Modification Program (HAMP)
- Expiration: December 31, 2013
Aids eligible homeowners by pre-approving short sales before listing and releasing them from future liability for the first mortgage debt.
California law prevents lien holders on a Short Sale property from obtaining a deficiency judgment against the Homeowner after a completed Short Sale. This includes the 1st, the 2nd (HELOC), and junior liens.