The Home Affordable Foreclosure Alternative Program or HAFA Program has the following guidelines for short sales that are not guaranteed by Fannie Mae or Freddie Mac.

• Principle residence of the borrower.
• The mortgage loan was originated prior to January 1, 2009 and it is the first lien mortgage.
• The loan is delinquent OR future default is forseeable.
• The present principle balance is $729,750 or less.
• The borrower’s monthly mortgage payment is more than 31 percent of his gross income.

Fannie Mae and Freddie Mac are expected to release a similar set of guidelines.

Information taken from REALTOR Magazine, February 2010.