With the launch of the Home Affordable Foreclosure Alternatives (HAFA) program looming, Mortgage Outreach Services (MOS Group), a loss mitigation service provider headquartered in Irvine, California, has launched a new HAFA short sale support service, which will provide turn-key, outsourced services to support servicers’ HAFA efforts.

Under HAFA, which goes into effect April 5, 2010, homeowners that do not qualify for a Home Affordable Modification Program (HAMP) loan modification may be able to avoid foreclosure by electing in participate in a short sale or deed-in-lieu of foreclosure. According to the program guidelines, every potentially eligible borrower must be considered for participation in the HAFA program before a lender forecloses and should be contacted within 30 days of his or her initial eligibility for the program.

“In a situation like this, where the borrower has been declined a loan modification, it’s imperative to communicate and follow up with the borrower quickly and effectively, as this first conversation can often mean the difference between a successful short sale transaction and one that falls into foreclosure,” said Greg Hebner, president of MOS Group.

Hebner said the HAFA program is not without its complexities, as there are a number of guidelines and reporting requirements that necessitate strong technology

and workflow to meet the demands of the program. However, he said servicers can benefit from additional capacity and expertise available through MOS Group’s new service offering.

MOS Group’s HAFA support service will focus on leveraging the company’s extensive experience in borrower contact and document retrieval and will streamline the HAFA short sale and deed-in-lieu process, thereby accelerating the timelines for servicers to get borrowers qualified for this foreclosure prevention program. To do this, the company said it will use its proven technology platform that has already been effective in delivering results for servicers within HAMP.

As part of its new initiative, MOS Group has put into place a HAFA team comprised of new hires and existing staff in its operations center. The company plans to grow this staff aggressively in the next 60 to 90 days, as it is anticipating strong demand for its HAFA service. All employees working within the HAFA program are selected on the basis of their knowledge of the short sale process as well as their effective communication skills.

“The notion of a short sale is a delicate subject for borrowers as it requires our staff to discuss loss mitigation options that would require the borrower to leave their current residence,” Hebner said. “These conversations require experienced professionals that combine deep loss mitigation experience and HAMP and HAFA program knowledge with a high level of compassion and empathy.”

To date, MOS Group has worked with more than 175,000 borrowers that are now in HAMP modifications. The company said it has received an overwhelmingly positive response from its servicers on the way borrower communication is handled throughout the loan modification process, and it fully expects that to carry through to its new HAFA short sale support service.