The HAFA (Home Affordable Foreclosure Alternatives) program became official on April 5, 2010. The HAFA program stream lines the short sale process by preapproving the short sale prior to the homeowner putting their home on the market. There are other great benefits – see our short intro video on HAFA.

But the guidelines didn’t include Fannie Mae or Freddie Mac mortgages. Finally, those guidelines were just released…and the California Association of Realtors published this summary comparing the two guidelines:

“While largely consistent with the HAFA guidelines for non-GSE mortgages, both Fannie and Freddie have implemented changes. To qualify for the Freddie Mac HAFA program, borrowers must be more than 60 days delinquent and have cash reserves of less than $5,000 or three times the current monthly mortgage payment, whichever is greater.  Similar to the non-GSE HAFA program, Fannie Mae allows borrowers to qualify if they are at imminent risk of default.  However, Fannie prohibits borrowers from participating in HAFA if the borrower: Has the ability to continue making mortgage payment, but chooses not to do so; has substantial encumbered assets of significant cash reserves equal to or exceeding three times the borrower’s total monthly mortgage payment or $5,000, whichever is greater; or has high surplus income.”

To read more on Fannie Mae guidelines…

To read more on Freddie Mac guidelines…