INCENTIVES FOR SHORT SALES

On May 14, the Treasury Department announced a plan to "provide incentives for servicers and borrowers to pursue short sales" in cases where the borrower is generally eligible for a modification under the federal government's Making Home Affordable plan, but either can't qualify or gets the modification but then can't keep up the payments for their home The Treasury is considerings paying a servicer $1,000 for completing a successful short sale, it will pay the borrower $1,500 to assist with relocation expenses, and it will pay second-lien holders who release their claims up to $1,000.