Options to Leave Your Home

If you have equity in your home, selling it allows you to pay off your mortgage and keep any remaining funds.

Equity is when the market value of your home is greater than the amount you owe on your mortgage (and any other debts secured by the home).

Selling with equity can pay off your mortgage debt, provide flexibility, and avoid the credit damage caused by foreclosure. Depending on the amount of equity, the remaining funds from the sale can help you transition to new housing, pay other expenses, or add to your savings.

A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than the total debt remaining on your mortgage.

A short sale is a way to avoid foreclosure, sell your home, and pay off part of your mortgage balance. In some cases you may be required to make a financial contribution toward the balance. Once completed, you’ll get a “deficiency waiver” that relieves you of any further financial responsibility for the mortgage.

• A short sale will cause less damage to your credit score than a foreclosure.
• You may also qualify for a new Fannie Mae mortgage in as little as two years after the sale, versus up to seven years if you go through foreclosure.
• In some cases, you could receive relocation assistance.

Even if your home has already been referred to foreclosure, a short sale may still be an option.

Transfer ownership of your home and be released from any further financial responsibility for the mortgage.

Already in foreclosure? Even if foreclosure proceedings have started, you may still have options to help you avoid it.

With a Mortgage Release — also known as a deed-in-lieu of foreclosure — you can voluntarily transfer ownership of your home to your mortgage company with no further financial responsibility for the mortgage. You don’t need to be in foreclosure to pursue a Mortgage Release. In some cases, you may be required to make a financial contribution toward the balance.

• A Mortgage Release can be a good alternative to foreclosure if you owe more than your home is worth.
• You may have the option to vacate the home, stay in the home rent-free for up to three months, or lease the home at market rates for up to one year.
• You may also qualify for a new Fannie Mae mortgage in as little as two years, versus up to seven years if you go through foreclosure.
• In some cases, you could receive relocation assistance.

Even if you’ve already been referred to foreclosure, a Mortgage Release may still be an option.