On April 28, the Obama Administration came out with additional details of the Treasury's plan to help bring relief to responsible homeowners under the Making Home Affordable Program. This includes, but is not limited to, measures to achieve greater affordability for existing homeowners by lowering payments on their second mortgages as well as a additional guidance help underwater borrowers stay in their homes - all coined under the phrase "Parallel Second Lien Program to Help Homeowners Achieve Greater Affordability and the Integration of Hope for Homeowners to Help Underwater Borrowers Regain Equity in their Homes."
Click here to read the entire press release and to see examples under the Parallel Second Lien Program.
This is great news for distressed homeowners, and another way Certified Loss Mitigation Specialists (LMC) to stand out from the pack and demonstrate their knowledge of this important topic.
It is interesting to note, that in a Linked-In discussion on this topic, one Realtor commented that, although the new parallel second lien program will help many of our existing clients who have listed their homes for sale "pre-foreclosure" or "short sale", it is also aimed to reduce these types of listings - now and in the future. So, how do Realtors react when the short sale listing gets pulled because the homeowner now has a new vehicle to help them stay in their homes? What will you do with all of the time, effort and marketing costs associated with a short sale listing - only to see it pulled off of the market because the seller received assistance under the Parallel Second Lien Program? Do Realtors need to start charging a "retainer" for these listings that will only be offset against the commission due at closing?
What are your thoughts?
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