Homeowners with Loans Insured by the Federal Housing Administration (FHA) may be approved to participate in an FHA Short Sale as an alternative to foreclosure.

A Short Sale could allow you to settle your debt without going through foreclosure.

Eligibility :

• You may be approved to participate in an FHA Short Sale if you meet all of the following criteria:

• You don't qualify for a loan modification or other FHA home retention option

• You're experiencing a permanent financial hardship such as a job loss, divorce, medical emergency, or a death, and are unable to afford your current mortgage

• You have only one FHA-insured loan

• Your property is owner-occupied, unless the following apply:

• Your reason for leaving the property is the same reason you couldn't make your mortgage payments

• The property wasn't purchased as rental investment or used as a rental unit for more than 18 months

• You're able to offer a clear title to the property