According to Wolfram alpha:
$$\lim_{n\to\infty}\frac{n!}{(n-a)!} = {1\over{(-a)}!}$$
Is this correct? How can we arrive at this equality? I would think that this limit diverges since $ \frac{n!}{(n-a)!} = n(n-1)(n-2)...(n-a+1) $ which should diverge as $n$ goes to infinity?
I don't know how you got that answer, but Wolfram Alpha does not say that. It says
$$\lim_{n\to 0}\frac{n!}{(n-a)!} = \frac{1}{(-a)!}.$$
Rather, we have
$$\lim_{n \to \infty}\frac{n!}{(n-a)!} = \infty$$
if $a$ is positive, and
$$\lim_{n \to \infty}\frac{n!}{(n-a)!} = 0$$
if $a$ is negative.
If $a=0$ then the limit is $1$.