The Arizona Department of Housing is trying to spend its $269 million in the federal foreclosures-prevention fund to help struggling homeowners complete short sales. They have had to make a change to their original program due to lack of cooperation from Fannie, Freddie, the servicing lenders.
The state agency is offering homeowners $4500 and three percent closing costs if they work with their lender to complete a short sale instead of losing their home to foreclosure. However, the final short sale approval is still up to the lenders on whether the deals go through. To apply for the short sale program, go to housingaz.com.
To try and spend some of the money to help homeowners, the agency received approval from the U.S. Treasury Department to start the short-sale program. The Housing Department is also expanding its program to cover mortgage payments for more unemployed and underemployed homeowners who are eligible. There are specific qualifications for the short sale program, so if you do not qualify for their stringent program, many servicers will still process a short sale. For more information regarding short sales, please visit http://www.az-short-sales.com/Short-Sales-Explained.aspx.
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