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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 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 assist members in understanding the Navy Federal HAFA Policy, we have developed the HAFA Matrix. If you have any questions regarding the information contained in this matrix, please call 1-888-503-7102, between 8:00 am and 4:30 pm, Eastern Time.

Last Updated: 2/15/2013

Eligibility Requirements 

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

Documentation Requirements 

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 paystubs 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 documents as SSN plus:

  • Accepted purchase contract
  • Copy of Net Settlement Sheet


Establishing Property Value — Navy Federal Credit Union will require an interior Brokers Price Opinion (BPO).

Price Reduction Review During Marketing Period — Every 60 days, an additional interior BPO will be pulled to evaluate current market value and adjust listing price. Once the property has been listed for 120 days, the member automatically goes into 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 Policy/Special Programs

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.

Average Timelines 

  • 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
  • Member has 14 days to accept the program either verbally or in written documentation to NFCU. After this timeframe, HAFA is denied
  • Home cannot be marketed for longer than 120 days without acceptable offer. After this timeframe, property converts to HAFA Deed in Lieu
  • Member has 3 business days to advise NFCU of an offer made on the property. NFCU has 10 days to review said offer. If offer is countered by Member, NFCU has 30 days to respond to the counter
  • NFCU has 14 days to accept/deny an offer made by a ARSS
  • Escrow and Closing must occur no later than 45 days from ratified contract date

Contact Information

  • For general HAFA questions and to check on the status of a request, please call our Mortgage Loss Mitigation hotline at 1-888-503-7102 between 8:00 am and 4:30 pm, Eastern Time
  • To escalate complaints or concerns regarding your mortgage loan, please call Mortgage Loss Mitigation at 1-888-503-7102
  • Assistant Supervisor, Mortgage Default Liquidation — 1-800-258-5948

Third-Party Vendors

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