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Short Sale Request

Home Affordable Foreclosure Alternatives Program (HAFA)

The HAFA program allows homeowners who can no longer afford to stay in their home but who want to avoid foreclosure to transition to more affordable housing through a short sale or deed-in-lieu of foreclosure. Please note that the homeowner must provide consent to share their first lien mortgage information with MFA.

HUD has a $3,000 allowance to remove subordinate liens, only if the property is occupied. Fannie Mae allows a $6,000 subordinate lien settlement. Negotiations with the homeowner and all other parties involved in the transaction will occur to ensure the maximum recovery of MFA's debt.

The following options are available for each second mortgage type: HELP, HOME Rehab, HOME Payment$aver, Mortgage Booster DPA, HERO DPA and Tax Credit Loan

Loan Type Repayment Type
MFA HELP Due on Sale/10-Yr Amortization/30-Yr Amortization
HOME Rehab Mandated Period of Affordability/ Due on Sale/Transfer/Refinance/ Forgivable Terms
HOME Payment$aver Mandated Period of Affordability/Due on Sale/Transfer/Refinance/ Forgivable Terms
SF HOME Development Mandated Period of Affordability/Due on Sale/Transfer/Refinance/ Forgivable Terms
Mortgage Booster 30-Year Amortization
HERO DPA 30-Year Amortization
Tax Credit Loan Program 30-Year Amortization


Documentation MFA must receive:

  • Lender/servicer’s offer for settlement of MFA’s second mortgage
  • Copy of the existing first lien documents: note and mortgage
  • First mortgage payoff statement
  • Copy of final signed purchase agreement
  • Preliminary HUD settlement
  • First mortgage investor/insurer settlement allowance/approval
  • Appraisal Report
  • Hardship letter
  • Other pertinent data supporting the request


Within l0 business days, MFA will review all of the documentation and send an approval/denial letter or a request for additional information from. If the request for settlement is approved, MFA will send a letter of acceptance with instructions for remittance of funds. A release of mortgage will be prepared four to six weeks from receipt of funds.

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Subordination Inquiry

Hardship subordination guidelines for MFA second mortgage loans

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