Where are the short sales with so many defaults? I'm sure that you have heard the term short sale, but did you know that in 2009 only 40,000 were approved, according to the Office of the Controller of the Currency. You might ask yourself why and there is an answer. The government took extreme measures to try to modify the existing bad loans.
The mortgage servicers also didn't want to see their losses appear on the books. Living in dream land, they expected prices to go back up before they had to sell. All this did was delay short sales.
Most of these loan modifications are re-defaulting giving the servicers a reason to do these short sales. The Obama administration is now pushing short sales. They feel that it will benefit the borrowers and help the housing market reach the bottom faster leading to a recovery. The government is giving incentives to those who short sale under new Treasury Department rules. In their efforts, they realize that they were delaying everything.
Under the Home Affordable Foreclosure Alternatives program (HAFA), they will be giving bonuses to the servicers who help out with the sales details. To meet all of the requirements, make sure that you have an expert agent, like me, who knows how to work with the lenders and servicers.
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