Q:

What is a HAFA affidavit form?

A:

Quick Answer

A HAFA affidavit form is a form required as part of a transaction through the Home Affordable Foreclosure Alternatives program, Bank of America explains. The program allows homeowners to settle mortgage debt without going through foreclosure, and the affidavit certifies that the transaction under the HAFA program is at arm's length and that no money is being exchanged that's not already outlined on the HUD-1 form.

Continue Reading

Full Answer

The HAFA Affidavit also outlines that there are no other contracts or agreements related to the current sale of the property, Bank of America notes.

The Home Affordable Foreclosure Alternatives program gives additional opportunity to homeowners to help them avoid costly foreclosures and provides additional options to avoid costly foreclosures and offers incentives to borrowers who utilize a short sale or deed-in-lieu to avoid foreclosure on their home, the Home Affordable Modification Program explains. These options are available to eligible borrowers who do not qualify for any trial period plan, cannot successfully complete a trial period plan, miss two payments during a Home Affordable Modification Program, or request a short sale or deed-in-lieu.

During a short sale transaction, the servicer allows the borrower to list and sell the property with the agreement that the net proceeds from the sale must be less than the amount due on the first mortgage, notes the Home Affordable Modification Program.

Learn more about Law

Related Questions

Explore