New Short Sale Guidelines
Call me to short sale your home
The U.S. Treasury has released long-awaited guidelines with incentives for short sales. A "short sale" is when a loan servicer agrees to sell the property for less than the outstanding loan balance. These guidelines were originally announced in May but were delayed due to legal and political issues. This means that we will see more short sales and fewer foreclosures. The new guidelines should streamline the process and make it easier for both sellers and buyers. Here are some highlights of the program:
- Mortgage servicers must respond "yes or no" to a pre-approved "Request for a Short Sale" within 10 business days. Upon a successful sale, servicers must agree to fully release the borrower from future liability for the difference in the net sale amount and the outstanding loan balance.
- Borrowers who agree to a short sale or deed-in-lieu of foreclosure will receive up to $1,500 to assist with their relocation expenses (paid at closing).
- Loan servicers and investors who sign off on payments to subordinate lien holders will earn up to $1,000 for successfully completing a short sale or deed-in-lieu.
- Subordinate lien holders (2nd mortgage holders)are limited to recovering no more than $3,000 from sale proceeds.
- The guidelines also prohibit loan servicers from demanding that real estate brokerages reduce the commission as a condition of approving a short sale.
- This is big as it will move a short sale faster and leave the seller with a relief from future responsibility for the debt. Call me for help with a short sale.
|
