Loss Mitigation

HAFA Misses the Mark, But Has Potential 

Housing industry analysts estimate that more than 10.8 million homeowners have negative equity, and thus face imminent mortgage default. The government’s effort to provide these homeowners a viable short sale alternative with incentives through the new Home Affordable Foreclosure Alternatives Program (HAFA) deserves kudos for effort. Short sales reduce long-term vacancies, leverage existing market mechanisms, and keep neighborhoods intact.

Unfortunately, HAFA lacks the necessary incentives to get people moving.