On the front page of this Sunday's Palm Beach Post was an article about foreclosures in South Florida and how homeowners are making "business decisions" to walk away from their properties rather than keep making mortgage payments on homes that have lost HALF of their value. Although this may not be the "right" thing to do, homeowners are concerned about being in the same predicament when they sell their homes 10 years later.
It's a crying shame that government's so-called "Home Affordable Program" is such a failure ... as of the end of December only 2% - 66,465 (that's NATIONWIDE) of the homes in default for 60 days or more had been given permanent loan modifications. Banks are stringing sellers along - even to the point of filing foreclosure notices during the "loan modification" period!
As you know, banks are using all kinds of delaying tactics NOT to approve short sales presented to them. Well, that's about to change with the Treasury's Department NEW Short Sale Guidelines. Here's a brief summary of those guidelines ...
1. Lenders will now have to respond to short sale requests in 10 days. No longer will they be able to sit on the offer for months.
2. Sellers will no longer have to worry about repayment of the mortgage debt because they will be released from that liability.
3. Sellers will be be able to receive a "relocation incentive" of $1,500. This amount will be deducted from gross sale proceeds at the time of closing.
4. Lenders will receive $1,000 to cover their admin and processing costs for either a short sale or a deed in lieu.
5. Only agents doing REGULAR business where the property is located will be able to list the home.
6. GOOD NEWS FOR YOU! Lenders will NOT be able to require agents to reduce their commission in order to get approval for the short sale.
7. Subordinate lien holders will be paid up to $3,000 when the property sells via a short sale.
Due to rising unemployment and the millions of ARM loans that are going to reset next year, we could be in for ANOTHER glut of properties in trouble next year. These new guidelines should assist you in helping homeowners by closing the short sales instead of forcing them to go through foreclosure. And the banks won't be able to beat you up for your commission ... it's about time!
Hope this helps you close those short sales that have been in your file for MONTHS!!! It's time for the seller to move on and for YOU to be PAID for your hard work!
Arlene Paukert
"Mrs. Real Estate"
Road to Wealth Inc.
Phone: 561-883-2222
E-Mail: Mrs. Real Estate
P.S. If you haven't already done so, sign up for our FREE 7-day training e-course for Realtors ... Whether you are a" rookie" or a seasoned professional you'll find ideas you can use. Sign up at MrRealEst8.com
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