Although the Home Affordable Foreclosure Alternatives (HAFA) program expired in December 2016, the need for foreclosure prevention is more critical than ever. With countless Americans facing financial hardship, missing mortgage payments, or struggling with mortgage debt, understanding your options—including short sales, deed-in-lieu of foreclosure, and loan modification—can make the difference between keeping your home or losing it in a foreclosure sale.
If you're facing foreclosure, it's essential to act early, understand your mortgage rights, and reach out to a HUD-approved housing counselor for free, low-cost support. This guide breaks down the alternatives that remain in place since HAFA’s expiration and how you can still avoid foreclosure and protect your financial future.
The HAFA program was designed for borrowers who were eligible for the HAMP (Home Affordable Modification Program) but could not qualify for or sustain a permanent loan modification. HAFA offered foreclosure prevention options like short sales and deed-in-lieu of foreclosure (DIL), allowing homeowners to avoid foreclosure proceedings and release liability for their mortgage loan.
While HAFA no longer exists, many of its principles still apply through current foreclosure laws, lender agreements, and mortgage assistance programs.
A short sale allows you to sell your home for fair market value, even if it’s less than what you owe on the mortgage. Your mortgage servicer must approve the sale, and you may need to submit loan documents and proof of financial hardship.
In a deed in lieu, you voluntarily transfer the property back to your mortgage company rather than go through foreclosure proceedings. This option may help you:
Your lender must confirm the fair market value and may still require that you attempt a short sale first.
Although HAFA has ended, lenders and loan servicers may still offer alternatives under similar conditions:
If this sounds like your situation, your first priority should be to contact your mortgage servicer directly and request information about their foreclosure prevention options.
Many for-profit companies and scammers claim they can stop foreclosure for a hefty fee. Be cautious of anyone who:
Instead, work with a HUD-approved housing counselor; they provide free support, help cut spending, and walk you through all available options. You can also submit complaints to your state attorney general’s office or financial regulation agencies if you suspect fraud.
A housing counselor can:
You can contact a HUD-approved nonprofit counselor by calling 800-431-8157 or through our website. Many counselors also have experience supporting veterans affairs borrowers and active duty military members.
Being in trouble paying your mortgage is stressful, but it’s not hopeless. There are legal protections in place to prevent foreclosure, and many lenders are willing to work with you—if you take action early.
If you’re struggling with mortgage debt, don’t wait for fewer options. Reach out today and start building a path forward—because paying your mortgage shouldn’t come at the cost of your peace of mind.
Talk to a housing counselor now »