mortgage payments, you may be able to take advantage of the FHA Pre-Foreclosure Sale (PFS) Program to sell your home at its current value and avoid foreclosure, even if the sales proceeds will not enough to pay off your mortgage debt in full. This allows you to transition to more affordable housing while avoiding a foreclosure.
To participate in the program, homeowners must be willing to make a commitment to actively
market their property for a period of 3 months, during which time their mortgage lender delays foreclosure action. Homeowners who successfully sell their property at near the present fair market value within the required time may receive a cash payment from FHA of up to $1,000 to help the homeowner transition to more affordable housing arrangements. If the property does not sell, the homeowner can choose to deed the property to the mortgage lender (deed-in-lieu of foreclosure)
For more information about the FHA PFS Program contact the mortgage servicer collecting
your monthly mortgage payments or go to the following FHA websites:
FHA Website “Avoid Foreclosure”
FHA Mortgagee Letter 2008-43, “Pre-Foreclosure Sale (PFS) Program - Utilizing the PFS Loss Mitigation Option to Assist Families Facing Foreclosure”