Loss Mitigation: Nonretention Options
Short Sale
A short sale may be an appropriate workout option when all home retention options have been exhausted, and the borrowers are unable to continue paying their full mortgage payment (including escrows).
You have authority to complete a borrower-titled short sale on every MGIC-insured loan that meets our Delegated Guidelines. MGIC requires that you perform a borrower financial analysis for all short sales.
Short sales that fall outside of Delegated Guidelines require MGIC approval before the sale is completed. Submit your request for approval to MGIC.
Home Affordable Foreclosure Alternatives (HAFA) Guidelines
MGIC delegates authority under HAFA if the short sale complies with MGIC Delegated Guidelines for short sales. To better understand MGIC’s guidelines with regard to HAFA, please review this overview document.
Guidelines
See section 2.06 of MGIC’s Default Servicing Guide.
Submission
Submit the following via MGIC/Link Servicing.
- the results of the MGIC Financial Analysis or comparable analysis (for all short sales); AND
- request for approval and required documentation for short sales that fall outside of Delegated Guidelines. Select Short Sales in the main menu.
Support
Contact MGIC Customer Service, customer_service@mgic.com or 1.800.424.6442.
View our MGIC/Link Short Sale training tutorial.
