New Assistance for Military Homeowners
The Federal Housing Finance Agency (FHFA) announced that military homeowners with Fannie Mae or Freddie Mac loans 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. Previously, many military families felt their only options were 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 a deficiency judgment or any cash contribution or promissory note from service members with PCS orders for any property purchased on or before June 30, 2012.
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. Military families were faced with tough situations such as living in separate homes or the risk of losing the service member’s security clearance.
The National Military Family Association has worked tirelessly to ensure the concerns of military families were heard. We are pleased the Consumer Financial Protection Bureau (CFPB) has continued to educate agencies and policymakers on the needs of military families. The FHFA policy change will help reduce the stress and financial burden of military homeowners faced with a government ordered move.
Read for more information.
A FHFA Fact Sheet on Military Short Sales
CFPB Press Release
Until military families are relieved of the weight of war, we hope you will continue to contribute to their wellbeing.
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