The administration’s Home Affordable Foreclosure Alternatives (HAFA) program hasn’t even been in effect for a full week, and positive feedback is already coming in.

Loan Resolution Corporation (LRC), a Scottsdale, Arizona-based pre-foreclosure asset manager that acts as a vendor for banks implementing HAFA, said it expects a tremendous surge in short sales to accompany the recent implementation of this new program.

“We found that a lot of short sale offers were being withheld from our clients so that they could be submitted to us under the new HAFA rules,” said Travis Hamel Olsen, COO of LRC. “There is definitely substantial interest from the public about this program—this gives them a graceful way to exit the property.”

HAFA, which officially went into effect on Monday, aims to help at-risk homeowners through the use of short sales or deeds-in-lieu. The government implemented this program in an effort to reduce foreclosures and “prop up” the national ailing real estate market, Loan Resolution Corporation said.

To encourage involvement in HAFA, the Treasury Department recently increased financial incentives for participants. Under the program, qualified homeowners are now eligible for $3,000 in relocation assistance, and servicers will receive $1,500 to cover administrative and processing costs for a short sale or deed-in-lieu completed under the program. In addition, subordinate lien holders may receive up to $6,000 in contributions.

“In speaking with junior lien holders, they have been very positive about the subordinate lien contribution increase from $3,000 to $6,000—a lot more short sales will get approved because of this,” Olsen said. “We are working with multiple top-five banks to assist them in reducing the blight of foreclosures in our neighborhoods across America.”

LRC offers a variety of default services, with short sales being at its core competency. The company says it pioneered the proactive approach to short sales and offers HAFA and other pre-approved short sale programs to help mortgage servicers reduce costs and increase resolutions.