Short sale assistance for military homeowners
The FHFA has announced
changes to short sale policies that will make it easier for military homeowners
with Fannie Mae and Freddie Mac loans to honor their financial commitments when
they are required to move as part of their duty.
Military homeowners who
receive Permanent Change of Station (PCS) orders will be eligible to sell their
homes in a short sale even if they are current on their mortgage. PCS orders
often require quick moves and can create hardship for military homeowners who
are underwater on their mortgages, and therefore, cannot sell their home
without taking a loss. Previously, many service members felt their only option
was either to maintain financial obligations on two residences or to default on
their mortgage.
Under the new policy,
Fannie Mae and Freddie Mac will not pursue deficiency judgments, cash
contributions, or promissory notes from members of the military with a change
in duty station for any property purchased on or before June 30, 2012. Service
members must have a Fannie Mae or Freddie Mac loan to be eligible.
Service members can
check Fannie Mae or Freddie Mac websites to see if their loans are held by
these GSEs or they can call hotlines for military homeowners at 1-877-MIL-4566
or 1-800-FREDDIE.
More info