Possible help for short sales
A new program is underway to help speed up the short sale process in 2010.
To qualify, the outstanding loan must have been made before Jan 1, 2009 and be less than 729k. The borrowers total mortgage payment must also exceed 31% of their monthly income.
The plan is simple – speed up the process b/w banks, real estate agents, and buyers/sellers. The idea is that paperwork will be reduced by forcing lenders to use the financial hardships documents submitted by borrowers seeking a loan modifications. To speed the process up further, lenders will have to approve short sale terms before the property ever goes on the market. (including list price) The govt will provide the mortgage companies with up to 1k to cover admin cost and other incentives to approve the short sale.
Negatives – lenders do not have to adopt the program until April 5th. This means current sellers who wish to take part are out of luck. While the govt is offering financial incentives to lenders, the #’s hardly offset their potential losses.