Short Sale Rules

New short sale rules from the Treasury Department take effect in April 2010, people may be able to qualify if they meet the following conditions:

  • The property is their principal residence
  • You are delinquent on the mortgage or close to it
  • The loan was made before Jan 1, 2009 and is less than $729,750
  • Your total homeowner’s monthly mortgage payment exceeds 31% of before tax income
  • The loan is not a Fanie May or Freddie Mac loan.
  • You must try to qualify for HAMP foreclosure modification plan before pursuing the home affordable foreclosure alternatives (HAFA) short sale plan.