Special offer

For those of you who have experienced, first hand, the painful process of a short sale, you'll be happy to know, starting April 5th 2010, this process will be streamlined. How does that effect you?

By
Real Estate Agent with Qualitas Property

For those of you who have experienced, first hand, the painful process of a short sale, you'll be happy to know, starting April 5th 2010, this process will be streamlined. How does that effect you?

If you're considering doing a short sale, you may want to review your qualifications. This new directive will provide incentive for banks and investors to work with you on the short sale. If you qualify for this streamlined program, you will be forgiven of the deficiency, guaranteed. The paperwork involved in the eligibility, the actually applications for the short sale, will no longer be completely and utterly, ridiculously exhausting. Borrowers will be eligible for a $1500 relocation incentive to cover moving costs for the seller. I guess they figure, if you're in short sale, you have no money. How can you move if you have no money? The property will be evaluated and given a pre-approval price prior to going on the market. THIS IS HUGE!

One of the main issues with short sales is the time it takes to get them approved by a bank. On average, a particular short sale, will go through three buyers before someone will wait around long enough to get the bank to agree to the short sale. Currently, it can take nine months for this approval. Imagine if you are the borrower and you have a particular interest rate you're locked into, a tax credit deadline you're trying to meet, and life plans you're trying to fulfill. You're ready to move into your new home and the bank is taking so long that your life is on hold for nine months! Imagine if you're a homeowner and this is being reported to the credit bureau. With a 30 day, 60 day, 90 day late; the longer, the more detrimental it is to your credit. What happens when you are 270 days late because you cannot get short sale approval - the bank is taking too long? That currently is a gray area. By the way, this law also outlines how the short sale is to be reported on your credit. This new process will give approval up-front so there will be no waiting time. What a win-win this will be for sellers, buyers, and neighbors alike. Moving this inventory much quicker will help to stabilize prices.

There are so many details, I cannot possibly put them all in an email form. Contact Me today               770-949-9494         770-949-9494 or visit https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf for more information."

Posted by

Paul Renton

CDPE, ABR, e-Pro, REO Specialist

New Development & Construction

  

 

Direct Line UK 0207 993 2580

 

Mobile +44 770367 2089

US 1-(786)-863-8787

Skype: paul.renton6

 

www.qualitasproperty.com 

Eric Bracht
Bracht Realty Group - Boise, ID
Idaho Luxury Home Sales

Paul,

Boy o boy I hope you are right. It has been a long time coming. They must have figured out a quicker way to collect from the mortgage insurance companies.

Mar 02, 2010 11:59 PM
Lorraine Sayer
Monument, Black Forest, Falcon, Fountain homes - Colorado Springs, CO
Realtor ABR,CDPE,GRI - Colorado Springs,CO RE/MAX

I only have one concern. The BPOs are coming back ridiculously inflated these days on many of our properties and we spend more time sending documentation to justify the short sale contract price.  If the pre listing approval price is inflated the properties will sit on the market just as long unless there is pre determined aggressive price drops. 

Mar 03, 2010 12:12 AM