“Short Sales Get a Boost”

Second mortgage holders have always been a problem, when it comes to getting a short sale approved and understandably so. They can now get up to $8,500. The treasury increased the amount that the second mortgage holder can receive by $2,500.

Short Sales Get a BoostThis is welcome news to the real estate community. Maybe now some of the short sales that have been held up can now get completed. Hopefully, this will speed up the process as well!

Treasury Change on Second Lien Release Could Boost Short Sales

By: Brian Collins

The Treasury Department’s decision to raise the amount servicers can pay second-mortgage holders for a lien release should give its short sales program a boost, according to an industry expert.

Second-lien holders can veto any short sale so Treasury raised the buyout limit by $2,500 to $8,500 in March along with other improvements to its Home Affordable Foreclosure Alternatives program.

“HAFA is really a nice program at this point,” said Travis Olsen, co-president of Loan Resolution Corp.

Since its rollout in the spring of 2010, servicers have completed 40,000 HAFA short sales. However, “the numbers have picked up a lot in the last year,” Olsen told National Mortgage News.

With the increase in the second-lien payoff limit, Olsen sees much more HAFA activity coming down the road.

“I can see numbers doubling from 40,000 to 80,000 in closed short sales in a year,” Olsen said.

image: digitalart/freedigitalphotos.net

Joe Petrowsky, NMLS #6869

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6 Comments on SHORT SALES GET A BOOST

JUN
04
104,125 Points 7 Featured Posts Outside Blog

Joe: That is welcome news.  I have seen a fair amount of short sale transactions held hostage by second lien holders.  Thanks for sharing!
1:01pm • #1
1,327,345 Points 37 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Joe

That's a step in the right direction.

Good luck and success.

Lou Ludwig
4:19pm • #2
795,559 Points Outside Blog

Hi Joe.

It looks like promising news.
4:35pm • #3
1,359,609 Points 243 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Joe, I got a Borrower right now that is purchasing a Short Sale, and the second lien holder is only owed $3,000 and is holding everything up.  I guess the figure they have very little to lose so why not play hard ball.
5:25pm • #4
191,060 Points 2 Featured Posts Outside Blog

Yes this is good news for all involved in a short sale. I've seen many deals that feel apart because the second lien holder wanted more money.
7:15pm • #5
872,258 Points 47 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Joe, this is welcome news. By the time this mess is over, we will have perfected it, right?

Sharon
7:50pm • #6


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Joe Petrowsky

Manchester, CT

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Joe Petrowsky NMLS# 6869 - Right Trac Financial Group, Inc

Address: 110 Main St., Manchester, CT, 06042

Office Phone: (860) 647-7701 x 116

Cell Phone: (860) 836-9294

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