What is a HAFA Short Sale?

In 2010, the government began offering financial incentives to push short sales through a program called Home Affordable Foreclosure Alternatives (HAFA) whereby the government provides payment to homeowners for moving and/or relocation expenses. Up to $3,000 may be available to sellers under this program. It was designed to assist homeowners from defaulting and foreclosure which can have a negative impact on credit for up to 10 years. A Short Sale is reflected on the credit report as "paid but not in full" and is relieved of deficiency. Visit the IRS Mortgage Debt Relief Act and Debt Cancellation Tax-click here.