Homeowners with underwater mortgages should experience easier short sales with new federal guidelines that go into effect Nov. 1, 2012.

The rules, announced Tuesday, no longer require homeowners with an eligible hardship to be delinquent on mortgage payments to qualify for a short sale, however, they must have loans backed by Fannie Mae and Freddie Mac.

Some of the highlights from the new guidelines include:

• The reduction or elimination of financial hardship proof from homeowners who have missed several mortgage payments and have low credit scores.
•   Homeowners with a Fannie Mae or Freddie Mac mortgage will be able to sell their home via a short sale if they are current on their mortgage.
•  Expedite processing of a short sale for borrowers with hardships such as death of a borrower, co-borrower, divorce, disability  or relocation for a job without any additional approval from Fannie Mae or Freddie Mac.
•   Second mortgage holders will be offered up to $6,000 to approve a sale.

To read the entire bulletin, click link below:

http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1216.pdf