New government guidelines for short sales

By
Real Estate Agent with ADL Sunshine Realty

On February 18 the Obama administration announced the Making Home Affordable (MHA) Program, a comprehensive plan to stabilize the US housing market.  On April 28 the administration announced additional details related to the Second Lien Program and strengthening Hope for Homeowners.  The Foreclosure Alternatives will help prevent costly foreclosures by providing incentives for servicers and borrowers to pursue short sales and deeds-in-lieu of foreclosure in cses where a borrower is eligible for a MHA modification but unable to complete the modification proess.  This program will assist homeowners who cannot afford to stay in their homes by helping them avoid foreclosure and relocate to a home they can afford.  The government will be providing incentives for servicers to pursue alternatives to foreclosures, borrowers incentives to cover relocation expenses to homes that are affordable and a streamlined process combining short sales and deed-in-lieu transactions.  For more information you can go to www.treas.gov to read the entire article.  This is good news for those of us specializing in short sales.  We can get the job done!

Comments (6)

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Heavens....everytime the Obama Admin tries to do something...things get worse and our debt goes up. Stay out of the economic kitchen.

May 15, 2009 02:44 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

@ Karen:  Your comment is pretty negative.  I am wondering what you would suggest to put things in a more positive direction ?  Any positive suggestions ?   Just wondering...

May 15, 2009 03:11 AM
Diana Lewis
ADL Sunshine Realty - Albuquerque, NM

Don't know what you mean - negative?  I was reporting that the government is going to incentivize banks/lenders to do short sales instead of foreclosures.  This is good news for homeowners and realtors.  It makes our jobs easier and saves homeowners credit.  The government is also going to provide a small amount of money to help homeowners relocate to more affordable housing.  Where is the downside?

May 15, 2009 03:36 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Short sales really need to get streamlined.  The whole process is exhausting in and of itself.

May 15, 2009 03:38 AM
Walter Getz
1st Choice Mortgage Resolutions - Rochester, NY

The positive aspect of this is that there is a 'chance' that homeowners, realtors, and resolutions consultants will have another outlet to persue in our efforts to help homeowners to stay out of foreclosure. The down side is that to date, only 14 companies have signed on to this program, while over 250 have received funds from the Recovery Act of 2008. This shows that many companies are letting the chips fall where they may. Let's hope that more of the 250+ follow the examples of the pioneering 14.

May 16, 2009 05:57 PM
Anonymous
Yoganand Ganeshram PA

Guys I am in Orlando Florida and have had great success in with Short Sles. I have closed 30 to date this year so far. I must say the process is not getting any better at this time reglardless what the government do. I would think  at this point in my experience it would be how lenders lead their team to make process better. They must revisit their process.

Oct 14, 2009 01:10 AM
#6