Hoping to positively influence the nations housing market by shortening and simplifying the short-sale process, the Treasury Department released new guidelines for borrowers, lenders and loan servicers. Adding another acronym to its list of government-sponsored programs, (this one is called HAFA) Home Affordability Foreclosure Alternatives.
The new guidelines offer incentives to borrowers and loan servicers for utilizing a short sale in order to avoid foreclosure. Some of the key features of HAFA include:
- Seller / Borrower can recieve up to $1500. for relocation expenses
- Borrowers are fully released from any future liability for the debt.
- Treasury Dept. will share the cost of clearing junior liens from 2nd mortgage holders in order to help release any claim that may interfere with the short sale process.
According to the Treasury publication,
"The program will publish streamlined and standardized documentation, including a Short Sale Agreement and an Offer Acceptance Letter. Creating one standard set of documents that the industry can use is expected to minimize the complexity of these transactions and significantly increase use of the short sale option."
The property must be listed with a licensed real estate broker and no foreclosure action can take place during the marketing period as long as the seller/borrower is acting in good faith. There is a maximum marketing period of 1 year to ensure that everyone is moving as quickly as possible in order to accomplish the short sale. Currently expiration of the program is scheduled for Dec. 31 2012.
For a complete text of the Treasury Departments guidelines please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com. You can also go to my website at http://ges-realty.com
　
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