Carrington Mortgage Services, LLC - Home Affordable Foreclosure Alternative (HAFA) Matrix

All servicers that have signed agreements with the U.S. Department of the Treasury (Treasury) to participate in the Home Affordable Modification Program (HAMP) must consider eligible borrowers who do not qualify for HAMP for other foreclosure prevention options including Home Affordable Foreclosure Alternatives (HAFA) which includes short sale and deed-in-lieu. However, each servicer has some discretion in determining additional eligibility criteria and certain program rules. In order to assist borrowers and their representatives in understanding any unique components of a servicer’s HAFA Policy, Treasury has developed this HAFA Matrix. The summary information in this matrix is prepared solely by Carrington Mortgage Services, LLC (CMS) and does not represent any determination by the Treasury as to the servicer's compliance with the Treasury's policies and guidance for HAFA. Treasury does not endorse any language or policy described in this matrix. Any questions regarding the information contained in this matrix should be directed solely to CMS.

Last Updated: 09/18/16


Basic eligibility requirements:

  • Borrower needs to be solicited/reviewed for a HAMP Modification prior to being reviewed for a HAFA Short Sale
  • First mortgage loan was originated on or before January 1, 2009
  • Current unpaid principal balance (UPB) on the first mortgage loan must be equal to or less than $729,750 for one-unit property and higher limits for properties with 2-4 units as follows: 2 units - $934,200, 3 units - $1,129,250, 4 units - $1,403,400
  • The foreclosure set sale date must be more than 37 days from the date of the HAFA request
  • The subject property’s purchase price must be greater or equal to 90% of the property’s Collateral Valuation Analysis (CVA) value subject to contractual and investor requirements which may require a different percentage or consideration of other factors such as loss severity
  • Accounts with Mortgage Insurance will require approval from the Mortgage Insurance Company prior to HAFA approval
  • Request for HAFA must be received on or before October 31, 2016.
  • HAFA Approval must be issued on or before December 30, 2016
  • The transaction closing date must be on or before December 1, 2017


List of all HAFA and CMS specific document requirements including those for:

Preapproved Short Sale Notice (SSN):

  • Request for Mortgage Assistance (RMA)
  • Subordinate lien documentation (if applicable)

Existing Offer Submitted Using an Alternative Request for Short Sale (ARSS):

Same documents as SSN plus:

  • Purchase and Sales contract and all addenda
  • Buyer’s documentation of proof of funds or buyer’s pre-approval or commitment letter on letterhead from lender


Establishing Property Value – CMS establishes the current value of the property by completing an CVA review. The CVA value is the collateral value of the property established by the CMS Valuation Group using a Broker’s Price Opinion (BPO) and any other relevant information (e.g., data sources, appraisals, Automated Valuation models, etc.)

Disputed Valuations - If the value of the CVA for a Short Sale is contested, the contesting party must provide the following:

  • Full interior inspection appraisal completed by a licensed or certified appraiser and submitted on an approved FHLMC/FNMA form in color PDF format
  • Appraisal reports completed by a trainee appraiser or provisional/restricted appraiser are not acceptable
  • Appraisals will be reconciled within 10 business days by a CMS Review Appraiser which will be good for 120 days; no subsequent reviews will be completed within the 120 day timeframe

Price Reduction Review During Marketing Period - There will be no price reduction during the HAFA Marketing period unless the CMS Review Appraiser agrees with the certified appraisal received under Disputed Valuations.


Once a HAFA Short Sale Notice is issued, the borrower is not required to make partial payments during the HAFA marketing period.


Deed-In-Lieu - CMS does not participate in the HAFA Deed-in-Lieu program.

Special Programs - CMS will evaluate borrowers for proprietary Short Sale and Deed-in-Lieu programs if the borrower is deemed ineligible under HAFA.


CMS, on behalf of the investor, will authorize the settlement agent to allow up to a portion of $12,000 of the gross sale proceeds as payment(s) to subordinate mortgage/lien holder(s) in exchange for a lien release and full release of borrower liability. Payments are made at closing from the gross sale proceeds and are required to be reflected on the HUD-1 Settlement Statement.


Timeframes for processing various aspects of a HAFA short sale, including any specific requirements for borrower compliance with timelines include:

  • Submission of Documentation/eligibility documentation acknowledgment– 5 business days.
  • Eligibility Review to Issuance of SSN – 30 calendar days.
  • Marketing period – 120 calendar days.
  • Submission of purchase contract – 3 business days.
  • Servicer’s approval of purchase contract – 10 calendar days if consistent with pre-approved terms.
  • Escrow and Closing - 45 calendar days from the short sale approval date. (One extension of up to 30 days will be allowed on the current approved contract)
  • HAFA Approval must be issued on or before December 30, 2016


Contact information for various aspects of the HAFA transaction:

  • General HAFA questions: Short Sale Department 1.888.507.6489
  • HAFA Submission: (Fax) 1.888.849.1034 or (Email)
  • Valuation appeals: Short Sale Department 1.888.507.6489
  • Transaction status: Short Sale Department 1.888.507.6489
  • CMS Complaint Escalation: (Email) or call 1.866.874.5017
  • Treasury Department Complaint Escalation: 1.888.995.HOPE(4673)
  • Assigned Loan Counselor: Borrowers can contact 1.800.790.9502


CMS may pull a credit report on borrowers during the eligibility review.

Contact information for the credit agencies:

Carrington Mortgage Services, LLC provides this information as a general guideline to assist borrowers and their representatives in understanding the HAFA process and eligibility requirements. Eligibility requirements may vary based on borrower’s specific circumstances and subject to investor and/or mortgage insurance requirements and applicable program guidelines, laws and regulations.