It looks as if the Treasury Department has stepped in and set guides for short sales, according to Reuters:

http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales

Inman adds this info: http://www.inman.com/news/2009/12/1/feds-incentivize-short-sales

 

The guidelines address the challenges faced daily by agents and homeowners:

  • Time it takes to approve an offer - mortgage servicers will now have 10 (TEN!!!) days to approve or disapprove a request for a short sale;
  • When done, the transaction must fully release the borrower from the debt;
  • Mortgage servicing companies are also prohibited from reducing real estate commissions on the sale, a practice which has stopped many agents from participating in short sales;
  • The guidance caps the aggregate proceeds to subordinate lien holders at $3,000, which will stem the "mafia bank" (so named by my most recent seller) in second position from keeping the homeowner as a hostage.

I am hopeful that these changes will help short sales move more quickly and help the economy recover faster.

I also hope that these guides will be applicable to those who are closing now and have closed this year.

May we continue to see improvements and continue to recover our housing market!

 

 

Dawn Maloney, REALTOR®, CDPE, CDRS Elite, Member of The Institute for Luxury Home Marketing
RE/MAX Haven Realty

Best Listings from Dawn Maloney, REMAX Haven Realty    Direct:  (330) 990-4236         Email: dawn@dawnsold.com

"Distinguished by Service" Helping home buyers and sellers in Summit, Portage, Stark, Medina, Wayne, Lake, Geauga and Cuyahoga Counties since 2003. Dawn Maloney, REALTOR® | RE/MAX HAVEN| (330) 990-4236 | All content ©2006-2013 by Dawn Maloney, REALTOR® unless otherwise noted.

Disclaimer: Information contained in this post is deemed reliable on the date of publication, but it is not guaranteed and it is subject to change without notice.

 

 
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6 Comments on Short Sale Changes Have Arrived!

DEC
01
2009
430,851 Points 20 Featured Posts Localism Sponsor Outside Blog

I'll bet Dave Liniger was very happy to hear this. I think he was instumental in helping this along!
4:47pm • #1
873,514 Points 167 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Dawn - I was happy to see this change as well, even though it frustrated me a bit since we took about 1/3 of our normal commission for a recent short sale closing.  :-)
5:53pm • #2
170,555 Points 2 Featured Posts

Dawn - All of these changes seem to be for the better.  Short sales have been very difficult for those buyers interested in purchasing them, and I am sure have been difficult for sellers as well.
6:21pm • #3
330,753 Points 16 Featured Posts Called Shot Master

Barb, yes I agree! I really appreciate his expertise and what he has done.

Jason, I hear you. The collective groan will turn into a sigh of relief if this works out.

Troy, you are exactly right!
7:19pm • #4
DEC
05
2009
655,247 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Dawn, I hope this helps.  I have had such a nightmare with short sales I have been reluctant to put a buyer through the process.  Hopefully this will resolve some of the issues.
9:46pm • #5
DEC
17
2009
1 Featured Post

Dawn - I sure hope this means a change for the better. As much as I like the changes, I am on the fence to see if the lenders will cooperate. My fear is they will not settle for such a small amount and my fear is that the payoff is not big enough to get them on board and make them move any faster. I surely hope it does!
8:49pm • #6


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Dawn Maloney 330-990-4236 Hudson Stow Cuyahoga Falls Silver Lake

Hudson, OH

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RE/MAX Haven - Northeast Ohio Real Estate Specialist

Address: Hudson, OH, 44236

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