Gabrielle (Kamahele) Rhind posted this important information regarding the New Short Sale Plan.
Information that we all need to be aware of who do short sales.
Toula N. Rosebrock(of Diane Turton, Realtors) - Broker / Sales Associate - Specializing in all of Ocean County - Lacey Township Real Estate, Forked River / Lanoka Harbor
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For homeowners unable to get a loan modification and those that are having trouble with their mortgage, the Obama administration's new standardized short-sale plan could bring hope.
The program hopes to streamline what has traditionally been a very long process by requiring lenders and others to use uniformed documents, timelines and financial incentives.
First here are some basics about short sales:
It's when a lender or investor agrees to collect less than the balance owed on a mortgage debt out of the proceeds of the sale of a property.
It's typically the last alternative before foreclosure.
To qualify, homeowners must talk to the bank and show that a short sale will bring a higher yield than a foreclosure.
After the home is placed up for sale, Buyers must be able and willing to pay the bank's accepted "short sale" price.
(Photo From Microsoft Free Clipart)
If the home has a second mortgage or home equity credit line, homeowners must negotiate with that lender as well. This is often very difficult because the second-lienholder may be have a note with no value in a foreclosure and at the same time, they are in a position to block or stop the short sale.
Banks, mortgage servicers and bond investors can have conflicting requirements for documentation and financial yields making it more difficult to sell under the short sale terms.
In comes the new plan to streamline the process! It will require lenders and servicers to use uniform documentation, pre-approved short sale terms and have better turnaround times. Additionally, there are some financial incentives:
If a homeowner is successful with a short sale under this program - they will receive $1,500 to help with their moving costs.
Mortgage servicers may benefit by $1,000 per short sale.
Investors benefit by $1,000.
Second-lien holders receive up to $3,000 from the sale proceeds.
And - even real estate professionals are included in this plan! The new guidelines will prevent banks from forcing reduced commissions as part of the transaction.
The new plan is scheduled to be out over the next several months and hopefully it will provide relief needed for those that need it!
Gabrielle (Kamahele) Rhind - 2009. If you want to reprint parts of this - just email me for my permission email@example.com or TucsonsRealEstate@gmail.com. Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.BuyMyTucsonHome.com.