Affordable Foreclosure Options

Participation in HAFA cannot save the homeowner from losing his or her property, but it can eliminate the effects of a foreclosure on the homeowner’s credit. Financial incentives for participation in the program include a $1,500 relocation bonus for displaced homeowners.

Other HAFA requirements include:

• Property is principal residence.

• Mortgage originated before Jan. 1, 2009.

• Mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.

• Borrower is delinquent or default is foreseeable.

• Homeowner demonstrates hardship.

• Borrower's total monthly housing payment exceeds 31 percent of gross income.

• Unpaid principal does not exceed $729,750.