New FHFA guidelines let homeowners perform short sales for divorce, disability — even if not in default

The Federal Housing Finance Agency has issued new guidelines to its mortgage servicers with respect to short sales. The guidelines, which take effect Nov. 1, will give homeowners with either a Fannie Mae or Freddie Mac mortgage the opportunity to sell their home in a short sale even if they are current — i.e, not in default — on their home loan by demonstrating an “eligible hardship.” Such hardships include the death of a borrower or co-borrower, divorce, disability or relocation for a job. “These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said Edward DeMarco, FHFA’s acting director. — Alexander Britell