A short sale alternative to foreclosure, one that pays home owners to sell at a loss, is the latest home owner bailout tool the feds are putting to work.

Effective today, April 5, the Obama Administration rolled out Make Home Affordable’s Home Affordable Foreclosure Alternatives (HAFA) short sale effort to help home owners avoid foreclosures by giving them up to $1,500.

Lenders and servicers can also get $1,000 each for short sale deals that pencil.

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