On Monday the U.S. Treasury Department's long awaited guidelines to streamline Short Sales hit the press. The new guidelines as enumerated below are from RE/MAX's Co-Founder Dave Liniger.
*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 $1500, which will be deducted from the gross sale proceeds at closing.
*The lender will be paid $1000 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 $1000 for allowing a total of up to $3000 in Short Sale proceeds to be distributed to subordinate lien holders.
The above guidelines will be a part of the Home Affordable Foreclosure Alternative Program (HAFA), part of the Home Affordable Modification Program (HAMP).
This is needed "light at the end of the tunnel" type work that will bring relief to many sellers and buyers. Sellers who are anxious to "move past" this unpleasant chapter in their life and will facilitate a much more efficient closing for excited buyers.
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