It's called the "Home Affordable Foreclosure Alternatives" program or "HAFA". It's the Obama administration's attempt at helping homeowners who can't afford their home.
"Dave Liniger who is the founder and president of ReMax International indicated that we're about 3 and a half million properties into the 9 million that are probably going to go through this," says Brian Walsh, a ReMax broker specializing in distressed properties.
A new government program has made the so-called "short-sale" process much easier for homeowners.
"Let's say you're 30 thousand dollars to the wrong side of the fence. That $30,000 would be forgiven," Walsh says.
Under the HAFA program, homeowners can sell their house for less than they owe and also be given money to put toward another home.
But, the short sale must take place on the person's primary residence.
Only the first mortgage on the home applies.
The loan must have originated before January 1, 2009.
And the maximum owed is capped at just over $700,000.
The total monthly mortgage payment must also exceed 31% of the borrower's income.
Walsh says -- yes this helps homeowners from walking away from their mortgages but what about banks.
They might be reluctant to comply but saving the American dream might be worth more.
"Loss is loss, of course. But I think, in the end, what we're really stating here is less loss by preventing it from going all the way."
The program goes into effect April 5th.
To go through with the program, you must list the property with a broker.
One of the added benefits is that you get $1500 from the government for "relocation assistance"
WKYC-TV