Getting out of debt without destroying their credit may be easier for many Americans thanks to new federal guidelines.

They’re designed to deal with the problem of millions of homeowners who have been forced into foreclosure by the recent recession and plummeting home values. Rather than walking away empty-handed when their home is worth less than the mortgage owed, homeowners now have financial incentives to work with the lender to sell their home through a process called a short sale.

They’re called short sales because the homeowner’s mortgage lender agrees to sell the home for less than the balance due on the mortgage. The process is not new, but the U.S. Treasury Department’s recently announced Home Affordable Foreclosure Alternatives (HAFA) program simplifies it and makes it more attractive to both homeowners and lenders.

A short sale generally costs the lender less than a foreclosure. Short sales are also a better alternative than a foreclosure for homeowners because their credit score isn’t as negatively affected and, in most cases, they are freed of the mortgage debt.

“A foreclosure creates devastating damage to your personal credit report,” said Margaret Kelly, CEO of RE/MAX International, a U.S.-based network of nearly 100,000 real estate agents. Many of her company’s real estate agents get special training in helping homeowners whose homes are worth less than their mortgages.

“Foreclosure credit damage can follow you for 10 years, but with a short sale, a homeowner could qualify for a new mortgage in as little as three years,” Kelly added.

HAFA provides financial incentives and simplifies procedures that previously made a short sale a long and frustrating process. Here are some of the new guidelines:

• Lenders must respond to short sale requests within 10 business days of receipt of the offer package.

• The seller will be released from all liability for repayment of the primary mortgage debt.

• Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.

• The lender will be paid $1,000 to cover administrative and proceeding costs for a short sale or a deed-in-lieu of foreclosure.

• The property must be listed with a licensed real estate professional who conducts regular business in the community where the property is located.