Options may seem slim to homeowners who are significantly underwater on their loans and hoping to escape.

A series of federal programs launched last year are available to help borrowers in certain circumstance avoid foreclosure. Those who don’t qualify may want to turn to a short sale, according to a recent report by BusinessWeek.

In this type of exchange, individuals sell their property for less than the amount of money they owe on it. In regular lending conditions, a bank would go after consumers for the difference, according to the report. However, the recent collapse of the housing market has left financial institutions with an excess of foreclose properties.

“So sometimes, to avoid the hassle and costs associated with going through a foreclosure, the lender will sanction a short sale by allowing a buyer to purchase the home for less than the mortgage balance,” the report said.

In addition to allowing them to escape from an underwater mortgage, short sales also present a series of benefits for consumers. Compared with a foreclosure, short sales are often less damaging to a credit score and allow individuals to buy a new home in less time. Through the Mortgage Debt Relief Act of 2007, consumers also receive relief from taxes associated with the sale.