HAFA Affidavit Form Required by the U.S. Treasury
Part of the Federal Government’s Making Home Affordable (MHA) program, the Home Affordable Foreclosure Alternatives (HAFA) program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure. The buyer and seller of a HAFA Short Sale will now be required to fully execute the HAFA Affidavit prior to and as a condition of closing.
The HAFA Affidavit form certifies:
- an arms-length transaction; this is the sale of a property in which the buyer and the seller have no existing relationship (they’re not family members, friends, business associates, etc.), and are acting in their own self-interest and are under no undue influence or pressure from other parties.
- that no money is being given or received that is not reflected on the HUD-1 Settlement Statement.
The HAFA Affidavit will also include an agreement that there are no other agreements, understandings, contracts or offers related to the current or subsequent sale of the property.