Is the Home Affordable Foreclosure Alternatives program right for me?
Program goal
If you cannot afford your mortgage payment and it is time to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program might be right for you. The goal is to help you sell your property and settle your mortgage debt if you owe more on your mortgage than your house is worth. A HAFA short sale completely releases you from your mortgage debt after selling the property, so you will not be responsible for the difference between the mortgage and the selling price. The difference is guaranteed to be waived.
This federal government program streamlines the short sale approval process and offers financial assistance to help you with relocation and moving expenses. You may be eligible to receive $3,000–$30,0001 in relocation assistance at closing. If you are not the primary resident of your property, you may request that the tenant receive the $3,000 in HAFA relocation assistance. Any additional amount above $3,000 may be paid to you.
Eligibility
You may be eligible for the Home Affordable Foreclosure Alternatives program if:
your current mortgage was taken out before January 1, 2009
your mortgage is past due or your loan is current but you believe you will miss a payment soon
the unpaid principal balance on the loan is no greater than the following:
- $729,750 for a single-family home
- $934,200 for a 2-unit property
- $1,129,250 for a 3-unit property
- $1,403,400 for a 4-unit property
you owe more on your house than it is worth
you are experiencing a hardship such as a job loss, divorce or medical illness and are unable to afford your current home loan
your house is not condemned
Is your loan an FHA loan? If so, try selling your home in an FHA Short Sale.
While a short sale will still have a negative effect on your credit, it generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter. As a result, your credit may improve faster. If a short sale is completed on your property, we will report that your loan was "paid in full for less than the full balance."
You should only consider a short sale after you have explored all other options, including modifying your loan.
You should contact a tax professional to gain an understanding of any tax implications.
If your loan is not owned by Fannie Mae or Freddie Mac, program requirements and eligibility may vary. Learn more
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
If you do not meet the eligibility requirements for the Home Affordable Foreclosure Alternatives program, you may qualify for the Cooperative Short Sale program. This provides another alternative to foreclosure and also offers relocation assistance. If you are not eligible for either program, you may want to consider a traditional short sale.
Program at a glance if you do not already have an offer
Step 1: Call us to discuss your financial situation with a specialist. We will check your eligibility for a Home Affordable Modification or any other home retention program, unless this was already done. If you are not able to stay in your house, we will let you know if you are eligible for a Home Affordable Foreclosure Alternatives short sale.
Step 2: If you decide a short sale is right for you, we will work with you and your real estate agent to begin the HAFA short sale request. If you have a second mortgage with another lender, or any other liens, you need to negotiate their release to have the HAFA short sale approved.
Step 3: Once you enter into a HAFA Short Sale Agreement, you will be given time to market and sell your house — typically 120 calendar days — during which time you will be required to work with a licensed real estate professional.
Step 4: Once you receive an offer, your real estate agent will submit it to us along with all required Home Affordable Foreclosure Alternatives documentation. We will get back to your real estate agent with a decision on the offer within 10 business days.
Step 5: If the offer is accepted, your house is sold and your mortgage and any other liens against the home are settled from the proceeds of the sale. You may be eligible to receive $3,000–$30,000 at closing to assist with relocation and moving expenses.
Search for a real estate professional to help you with your short sale.
Get more details on the steps of a Home Affordable Foreclosure Alternatives short sale.
1 The relocation assistance payment is calculated based on the appraised value of the homeowner's property. The total amount will be no less than $3,000, but no more than $30,000. If the property is the principal residence of a tenant or other occupant, the occupant may be eligible to receive $3,000 of the relocation assistance. If you are eligible for an amount above the $3,000 HAFA relocation assistance, the additional amount will be paid you. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and you must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens). If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the property must close by September 26, 2013.
How do I get started with a Home Affordable Foreclosure Alternatives short sale?
Before we begin
To start the Home Affordable Foreclosure Alternatives short sale process, you need to call us to request to sell your house in a short sale.
If you have not applied for a Home Affordable Modification prior to requesting a short sale, we will check to see if you meet that program’s eligibility requirements first. To do this you will need to update us on your financial information.
Let us help you
Call us today at:
1.866.880.1232
8am-10pm ET Mon-Fri
9am-5:30pm ET Sat
Call Information Sheet Opens a New Window.
This document was created to help you keep track of important deadlines and take notes during the call.
Now that I am in the process, what is next?
If you are in the process of selling your house in the Home Affordable Foreclosure Alternatives (HAFA) program, we can help you understand what you need to do next.
I have requested a Home Affordable Foreclosure Alternatives short sale.
Once you have requested a short sale, you will have to update us on your current financial situation. If you have not already been reviewed for Home Affordable Modification, we will check to see if you may be eligible for a loan modification. If you do not qualify for a loan modification or if you no longer wish to stay in your house, you may need to complete additional documentation to determine if you are eligible for a short sale through the Home Affordable Foreclosure Alternatives program. If more forms are needed, we will send them to you. We recommend that you work with an experienced real estate agent.
After you have submitted your documents, we will determine if you meet the program’s guidelines within 45 calendar days.
Yes. You can review our Home Affordable Foreclosure Alternatives Policies to understand how the program works for loans that are not owned by Fannie Mae and Freddie Mac.
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
I am pursuing approval for a short sale.
Now we will work with you to determine a recommended sale price. You may have heard this referred to as the fair market value. To determine fair market value, a valuation of your house must be completed, and there is no charge to you for the valuation. During this process we will consider the sale price of other houses of similar size in your neighborhood to determine a recommended sale price for your house.
After we have evaluated your property, you will receive the Home Affordable Foreclosure Alternatives Short Sale Agreement, which lists the recommended fair market value. You will need to sign and return this to us within 14 calendar days.
We will also work with you and all parties necessary to approve your Home Affordable Foreclosure Alternatives short sale request. Even if you are pursuing a short sale with us, in most cases there is a third party that has ownership of the loan. We will need their approval in order to finalize the short sale.
If you have a Bank of America home equity loan or home equity line of credit (also referred to as a second lien), we will take care of getting approvals for your HAFA short sale request and completing your Second Lien Release form. However, if your home equity loan or line of credit is with another lender, you will have to contact that lender and request a Second Lien Release. The second lien lender will be required to provide us with the appropriate lien release documentation before any offer can be considered.
Yes. You can review our Home Affordable Foreclosure Alternatives Policies to understand how the program works for loans that are not owned by Fannie Mae and Freddie Mac.
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
I am trying to find a buyer.
You are required to work with a licensed real estate professional to market and sell your house. We strongly recommend working with a licensed agent who has experience with short sales and can help guide you through the process. You will not have to pay the cost of the real estate agent since they will be paid from the sale of the house.
Typically, you will be given 120 calendar days to market and sell your house at the price given in your Home Affordable Foreclosure Alternatives Short Sale Agreement. During this time, it is important to work with your agent and show your house to as many buyers as possible. We recommend keeping your house in clean condition and making it available for showings to potential buyers at all times.
Please note that you cannot sell the house to a family member or anyone else you have a personal connection with. This is known as an arm’s-length market transaction.
You may be eligible for the Cooperative Short Sale program. This provides another alternative to foreclosure and may allow you to continue to market the house for sale. To learn more, please call us at 1.866.880.1232.
If you decide not to continue to market the house, you may still settle your mortgage debt by signing over your house to us in a Home Affordable Foreclosure Alternatives deed in lieu of foreclosure.
There are benefits to doing a Home Affordable Foreclosure Alternatives deed in lieu over a foreclosure. A Home Affordable Foreclosure Alternatives deed in lieu of foreclosure spares you from having to go through the public auction or sale of your home. This generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter than it would with a foreclosure. As a result, your credit will likely improve faster than it would if your house goes to foreclosure.
If you sign your house over to us in a Home Affordable Foreclosure Alternatives deed in lieu of foreclosure, you may be eligible to receive up to $3,000 to help you with moving, rental and relocation expenses.
Yes. You can review our Home Affordable Foreclosure Alternatives Policies to understand how the program works for loans that are not owned by Fannie Mae and Freddie Mac.
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
I have received an offer on my house.
Once you receive an offer, your real estate agent will submit the offer (signed by the buyer) as well as the Request for Approval of Short Sale form originally provided to you with the Short Sale Agreement. We will get back to you within 10 business days with a decision on the offer. If your home equity loan or home equity line of credit is with another lender, you must contact the lender and request a Second Lien Release.
To make sure your short sale is completed successfully, your agent must submit any requested documents on time. It is also important that your agent responds quickly to any counteroffers you receive.
In that case, you will need to follow the traditional short sale process instead of pursuing the Home Affordable Foreclosure Alternatives program.
Yes. You can review our Home Affordable Foreclosure Alternatives Policies to understand how the program works for loans that are not owned by Fannie Mae and Freddie Mac.
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
The offer on my house was accepted.
Once we accept the offer, we will provide you with an approval letter releasing the house for purchase. With everything in order, final documents will be prepared for closing. You will receive a letter outlining the details of the sale of your house and a set of documents that must be signed, notarized and returned to us before your HAFA short sale can be completed.
At the closing, you will receive $3,000–$30,0001 to help you with your moving, rental and other relocation expenses. If you are not the primary resident of your property, you may request that the tenant receive the $3,000 in HAFA relocation assistance. Any additional amount above $3,000 may be paid to you. For tax purposes, relocation assistance paid at closing is considered income. Please consult a tax advisor for more information on how this could affect you.
The sale of your house is now finalized and your mortgage and any other loans against the house are settled from the proceeds of the sale. Under the HAFA program, you are fully relieved of any obligation to repay the mortgage. As with the sale of any house, unless otherwise negotiated, you will need to move out by the closing date.
Yes. You can review our Home Affordable Foreclosure Alternatives Policies to understand how the program works for loans that are not owned by Fannie Mae and Freddie Mac.
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
1 The relocation assistance payment is calculated based on the appraised value of the homeowner's property. The total amount will be no less than $3,000, but no more than $30,000. If the property is the principal residence of a tenant or other occupant, the occupant may be eligible to receive $3,000 of the relocation assistance. If you are eligible for an amount above the $3,000 HAFA relocation assistance, the additional amount will be paid you. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and you must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens). If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the property must close by September 26, 2013.
Home Affordable Foreclosure Alternatives Frequently Asked Questions
It may be possible, depending on your loan and circumstances. Please call us at 1.866.880.1232 to discuss your options.
You can search for real estate professionals in your area who are experienced with Bank of America short sales.
Because you would sell your home for less than the loan amount in a short sale, you will not receive any money from the sale of your home. However, you may be eligible to receive $3,000–$30,0001 in relocation assistance under the terms of the HAFA Short Sale Agreement. If you are not the primary resident of your property, you may request that the tenant receive the $3,000 in HAFA relocation assistance. Any additional amount above $3,000 may be paid to you.
You may be eligible for the Cooperative Short Sale program. This provides another alternative to foreclosure and may allow you to continue to market the house for sale. To learn more, please call us at 1.866.880.1232.
If you decide not to continue to market the house, you may still settle your mortgage debt by signing over your house to us in a Home Affordable Foreclosure Alternatives deed in lieu of foreclosure.
There are benefits to doing a Home Affordable Foreclosure Alternatives deed in lieu over a foreclosure. A Home Affordable Foreclosure Alternatives deed in lieu of foreclosure spares you from having to go through the public auction or sale of your home. This generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter than it would with a foreclosure. As a result, your credit will likely improve faster than it would if your house goes to foreclosure.
If you sign your house over to us in a Home Affordable Foreclosure Alternatives deed in lieu of foreclosure, you may be eligible to receive up to $3,000 to help you with moving, rental and relocation expenses.
Yes. You can review our Home Affordable Foreclosure Alternatives Policies to understand how the program works for loans that are not owned by Fannie Mae and Freddie Mac.
To find out if your loan is owned by Fannie Mae or Freddie Mac, simply call the toll-free numbers below or use their online lookup tools.
Fannie Mae:
1.800.7FANNIE (8am to 8pm ET) www.fanniemae.com/loanlookup Opens a new window
Freddie Mac:
1.800.FREDDIE (8am to 8pm ET) www.freddiemac.com/mymortgage Opens a new window
There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
A loan can be transferred to a different servicer while in the process of a short sale. You may hear this referred to as a service release. A loan servicer sends your loan statements, collects your monthly payments (principal, interest, taxes and insurance) and handles other aspects of your loan. You will be notified at least 15 calendar days in advance if your loan is going to be transferred. Your new servicer will be aware of your short sale status and should have received all of your documents from us. You should continue to work with the new servicer to complete the process you have started or to determine which programs may be most helpful in your current situation.
If you were denied home loan assistance, such as a request for a loan modification, short sale or deed in lieu you may be able to dispute the decision. You can file an escalated case with us if you have reason to believe any of the following are true:
- you met all the criteria for home loan assistance but were not properly evaluated for assistance or were improperly denied assistance. This may include:
- you did not receive adequate notice from us about your foreclosure alternatives
- you were not given appropriate time to respond to communications from us during your loan review process
- your loan was referred to foreclosure prematurely, or we did not suspend foreclosure activities when we were required to do so
You can also file an escalated case if either of these two specific concerns apply to your loan:
- you have a reasonable belief that your mortgage loan is being serviced in a fraudulent manner
- you have retained a lawyer to help you resolve a mortgage dispute with Bank of America
If you have reason to believe that any of the above apply in connection with your loan review and affected your eligibility for home loan assistance, you may file an escalated case with us to review your concerns.
Please note that inquiries about a pending request for home loan assistance or general questions about the servicing of your mortgage do not meet the requirements for an escalated case. For general servicing questions, please call 1.800.669.6607 (Monday-Friday, 7am-7pm local time).
To file an escalated case, you or any third party representing you, such as a housing counselor or attorney, should send us a brief letter describing the specific reasons you believe one of the above scenarios applies to your loan or to your application for home loan assistance. If you are represented by an attorney, please have your lawyer submit this request on your behalf.
Escalated case requests must be sent by mail to the following address:
- Bank of America Corporate Center
Attn: BAC Escalated Case Unit
P.O. Box 940508
Simi Valley, CA 93094-0508
Please note that if a third party, such as an advisor or a nonprofit advocate, contacts us to submit an escalated case on your behalf, we must have your written authorization before we can communicate with them about you or your loan. Without your written authorization, we will not be able to discuss your home loan with them. We can provide you with an authorization form upon request.
What to expect after submitting your request
Within three business days after receipt:
- If your submission meets the requirements for an escalated case, within three business days of the receipt of your request, we will send you a written acknowledgement that we have received your request. This acknowledgement will also include the estimated date by which your escalated case should be resolved, along with a toll-free number for the Escalated Case Unit.
Within 15 calendar days after receipt:
- In most cases, within 15 calendar days of receiving your request, we will mail you a written response describing the proposed resolution of your request and any next steps to be followed by you or by us. If your matter cannot be resolved within 15 calendar days, we will notify you of the delay and give you a new estimated resolution date. This new estimated resolution date, in most cases, will be no longer than 30 calendar days from the date we received your original escalated case.
Checking the status of your escalated case
Your written confirmation will include a toll-free number you can call for information about your escalated case.
1 The relocation assistance payment is calculated based on the appraised value of the homeowner's property. The total amount will be no less than $3,000, but no more than $30,000. If the property is the principal residence of a tenant or other occupant, the occupant may be eligible to receive $3,000 of the relocation assistance. If you are eligible for an amount above the $3,000 HAFA relocation assistance, the additional amount will be paid you. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and you must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens). If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the property must close by September 26, 2013.
