Saturday, January 9, 2010
Avoid Foreclosure With New Short Sale Plan.
Avoid Foreclosure With New Short Sale Plan.
Treasury Sets New Short Sale Guidelines .The U.S. Treasury Department's long-awaited guidelines to streamline Short Sales will have a significant impact on families facing foreclosure
The Home Affordable Foreclosure Alternatives Program (HAFA), part of the Home Affordable Modification Program (HAMP), provides financial incentives and simplifies Short Sales procedures by setting limits on the time it takes lenders to respond, freeing borrowers from debt and capping claims of subordinate lenders.
With unemployment over 10 percent and millions of adjustable-rate mortgages primed to reset next year, a "tsunami" of distressed properties could be on the horizon. The new guidelines, as well as a growing acceptance by lenders and second-lien holders, give homeowners a better chance of closing a Short Sale rather than losing their house to foreclosure.
Here are some of the new program's key 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 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 processing costs for a Short Sale or a deed-in-lieu.
• The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
• The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.
• The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate Lenders must respond to Short Sale requests within 10 business days lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.
Buying or Selling a home in Stone Harbor or Avalon, or if you need a Summer Rental, it would be my pleasure to help you with your Real Estate needs.
e~mail me at Nancy@NancyMAlexander.com or Call me! I love to talk Real Estate! Call my cell 609.425.7521
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Nancy M. Alexander
Stone Harbor and Avalon NJ Real Estate
