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Guidelines for Short Sales Announced--Are You Underwater?

IF YOU OR ANYONE YOU KNOW OWES MORE ON THEIR HOME THAN WHAT IT'S WORTH--TAKE NOTE!

Government Announces Short Sales Guidelines
The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

Scheduled to launch in April 2010, the Home Affordable Foreclosure Alternatives Program (HAFA) will offer up to $3,500 in incentive payments to qualified borrowers, servicers and investors who complete short sale transactions for properties with loans on the verge of foreclosure.

HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.

 

To qualify under these new guidelines:

  • The property must be the home owner's principal residence.
  • The home owner must be delinquent on the mortgage or close to defaulting.
  • The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
  • The borrowers' total monthly mortgage payment must exceed 31 percent of their before-tax income.

The following incentives will apply:

 

•·         The borrowers will receive $1,500 from the government for relocation expenses.

•·         The mortgage-servicing companies will receive a $1,000 from the government to cover administration and processing costs.

•·         Investors who hold the first mortgage will receive up to $1,000.00 from the government for allowing the second-mortgage holders to receive up to $3,000.00 of the sales proceeds in exchange for releasing their liens.

In total, each transaction under HAFA will cost the Treasury up to $3,500 in incentive payments.

 

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Yes, Virginia, there IS a Santa Claus!  This is your chance to pass "GO" AND Collect $200--how often does that happen these days?

 

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Contact Me

 FILL OUT THE:

EASY ONLINE FORM

Thanks for your interest, and best wishes in your home search.

For more Tips and strategies if you are facing foreclosure-check my website

 

Facing Foreclosure?
GET GOOD ADVICE
FREE INFORMATION


Pinellas County Short Sales

> Search Pinellas Homes FREE

How To Buy
3, 4 or 5 Bedroom
BANK OWNED HOMES

Click Below
Pinellas Bank Owned Homes

 

 

 

 

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Regards,
Loretta J. Buckner
Your "Real" Estate Consultant for Life
www.RealWorldPropertiesInc.com
727-656-6206

Comment balloon 1 commentLoretta Buckner • December 03 2009 11:59AM

Comments

This is such good news for those who cannot qualify for a loan modification and are looking at foreclosure as their only option. Hopefully with these incentives banks will be more willing to approve these short sales and keep more people from foreclosures!

Posted by Christine Hynes, Orange County Senior Loan Consultant (American Capital Corporation) over 10 years ago

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