Short Sale Guidelines Being Simplified
From RealyTrac.com:
HAFA: The Government Response
Hoping to positively influence the nation’s housing market by shortening and simplifying the short-sale process, the Treasury Department released new guidelines for servicers late last year.
Under those directives, HAFA (Home Affordable Foreclosure Alternatives) offers servicers and borrowers incentives for utilizing a short sale or a deed-in-lieu to avoid foreclosure on any loan that is eligible under the HAMP (Home Affordable Modification Program) program thereby reducing the need for a potentially lengthy and expensive foreclosure process.
Key features of the program include:
–Sellers/borrowers can receive up to $1,500 for relocation expenses
–Lenders will receive $1,000 for each completed short sale
–Up to $1,000 for investors who allow up to $3,000 in short sale proceeds to be distributed to subordinate lien holders. Borrowers can receive pre-approved short sale terms prior to the property listing
–Borrowers are fully released from future liability for the debt
This last point is key, since that is a big obstacle for many debtors. Now you just have to be able talk the bank into accepting it.
Leave a Reply
You must be logged in to post a comment.