After the 2009 short sale program, the Treasury is looking for was to make it easier and quicker by offering incentive payments of $1,000 per completed short sale. For each deed in lieu of foreclosure the servicer will also receive $1,000. The subordinate lien holder will be paid up to $3,000 of the short sale proceeds to release their claims on defaulted properties BUT the primary investor must agree to share the earnings.
According to recent updates, the homeowner who agrees to a short sale or deed in lieu of foreclosure will get up to $1,500 to help with relocation and must be "fully released" from any future liability. This HAFA--Home Affordable Foreclosure Alternative program was announced in May but was delayed because of concerns over legalities involving the second lien holder holding claim over the property. These new procedures will help speed the process as now we have some guidelines.
I am sure, like anything else, this program will take a little time to educate the public. All of us in real estate can help this process by sending out newsletters to our client base. Although we may not have anyone in this category, one of our customers or clients may have a family member or friend who can be helped.
Let's all hope this measure helps to move this housing crisis.