Navy federal credit union

The home affordable foreclosure alternatives (HAFA) program provides many options to avoid the costly foreclosures and offers the incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid the foreclosure. Home affordable foreclosure alternatives are available to all those borrowers who are eligible for HAMP;

  • Do not qualify for a Trial Period Plan;
  • Do not successfully complete a Trial Period Plan;
  • Miss at least two consecutive payments during a HAMP modification; or,
  • Request a short sale or DIL.

In the process of the short sale the service allows the borrower to list and sell the mortgaged property with the understandings that the net proceeds from the sale may be less than the total amount that is due on the first mortgage.

Navy Federal Credit Union Foreclosure Alternates

Generally, if the borrower makes a good faith effort to sell the property, but is not successful, then a service may consider a Deed in lieu. With a DIL, the borrower preferably transfers ownership of the property to the servicer and the title provided by the borrower is free and clear of mortgages, liens and obstacles. Either with the Home Affordable Foreclosure Alternatives or Deed in Lieu, the servicer may not require to cash contribution or any promissory note from the borrower and must yield the ability to follow a deficiency judgment against the borrower.

Home Affordable Foreclosure Alternatives program simplifies and well organized the short sale and Deed in Lieu process by providing a standard process flow, minimum performance timeframes and standard documentation.

The Navy Federal Credit Union has partnered with the U.S. Department of the Treasury and participates in the Home Affordable Modification Program (HAMP). Navy Federal Credit Union will consider other foreclosure prevention options for eligible borrowers who do not qualify for HAMP. These options include Home Affordable Foreclosure Alternatives (HAFA), which consist of short sale and Deed-in-Lieu of Foreclosure. In order to help members in understanding the Navy Federal Credit Union HAFA Policy, we have developed a summary of important information related to Home Affordable Foreclosure Alternatives program with Navy Federal Credit Union. 


  • Current Unpaid Principal Balance cannot exceed $729,750 for single unit home
  • The mortgage is lawless or default is forthcoming
  • A mortgage loan is a first lien originated on or before 1/1/2009
  • The member does not qualify for a Home Affordable Modification
  • The member did not successfully complete a HAMP Trial Period
  • The member is delinquent on a HAMP Modification (post-modification)
  • Member requests a short sale/Deed in Lieu


Pre-Approved Short Sale Notification (SSN):

  • Hardship Affidavit/Request for Modification and Affidavit (RMA)
  • Evidence of residency or evidence that the property is an investment
  • Dodd Frank Certification, if applicable
  • Subordinate lien documentation
  • Evidence of Member’s income (2 current pay stubs for all jobs held)
  • 2 consecutive bank statements no more than 60 days for all accounts
  • Notarized and signed 3rd party Authorization
  • HAFA Affidavit

Existing Offer Submitted Using An Alternative Request For Short Sale: –

  • Same document as Pre-Approved Short Sale notification (SSN)
  • Accepted purchase contract
  • Copy of Net Settlement Sheet


Establishing property value: Navy Federal Credit Union will require an interior Broker’s Price Opinion (BPO). Price reduction review during marketing period: Every 60 days, an additional interior BPO will be pulled to evaluate the current market value and adjust the listing price. Once the property has been listed for 120 days, the member automatically goes into a Deed in Lieu status unless an offer and a signed SSA have been received.

PAYMENTS DURING MARKETING PERIOD: – Member will be required to make a payment on the 1st of each month while in HAFA in the amount of 31% of their gross income OR their actual mortgage payment, whichever is less.


Deed in Lieu:  A Deed-in-Lieu of Foreclosure will be offered if there is no Short Sale offer within 120 days of listing as long as the member reduces the list price to be in line with the updated BPO every 60 days.


  • Initial review of HAFA application to occur within 30 days of complete package receipt
  • SSN sent to the member within 14 days of receipt of value
  • The Member has 14 days to accept the program either verbally or in writing documentation to NFCU. After this timeframe, HAFA is denied
  • The home cannot be marketed for longer than 120 days without the acceptable offer. After this timeframe, property converts to HAFA Deed in Lieu
  • The Member has 3 business days to advise NFCU of an offer made on the property. NFCU has 10 days to review the said offer. If the offer is countered by Member, NFCU has 30 days to respond to the counter
  • Escrow and Closing must occur no later than 45 days from ratifying contract date


  • LSI; Interior BPO Inspections
  • Keystone Asset Management; Interior BPO Inspections
  • Safeguard; Interior BPO Inspections/Property Preservation