Good News for Military Personnel: If you're currently active duty in the mil and considering a short sale, but don't want to have late payments on your record in addition to the short sale, there is good news for you. If your existing loan is a Fannie Mae or Freddie Mac loan, the Director of the Federal Housing Finance Agency has announced that military members who have received a PCS order can sell their home via short sale without first having to go into default (missing payments) first. Even better, the lender will not pursue a deficiency judgment after close of the short sale. The reason for this new policy is that when a PCS order is received, the military member hasn't any option about staying or going. Often, this forced move requires a sale of the home so that the serviceperson will be able to buy a new residence at the new PCS location. This policy applies to all homes purchased prior to 30 June 2012.