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Short Sales Provide Foreclosure Alternative

If you are experiencing a financial hardship, such as unemployment, or you are a member of the military with Permanent Change of Station orders, you may be eligible for a “short sale” even if you are current on your mortgage. A short sale is an alternative to foreclosure and may be an option if you:

  • Are ineligible to refinance or modify your mortgage,
  • Are facing a long-term hardship,
  • Are behind on your mortgage payments or facing imminent default,
  • Owe more on your home than it’s worth,
  • Have not been able to sell your home at a price that covers what you still owe on your mortgage, or
  • Can no longer afford your home and are ready or need to leave.

What is a Short Sale?

A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home for less than the full amount due on the mortgage loan and the mortgage lien on the property will be released.

You may also be eligible for the government’s Home Affordable Foreclosure Alternatives Program (HAFA), part of the Making Home Affordable program, which offers short sale and deed-in-lieu of foreclosure options. For complete details on HAFA eligibility and requirements, go to

Take Action

You can find more information about short sales on this website. To determine if a short sale is a good option for you, contact your mortgage company or a Fannie Mae Mortgage Help Center and tell them you are interested in a short sale and you want to see if you qualify.

Editor’s Note: Making Home is an official program of the Departments of the Treasury & Housing and Urban Development

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