Recent Short Sale News from Realtor in Jupiter, Florida.
This blog is to keep you the seller informed of recent Short Sale News.
As your source of Real Estate News in Jupiter, Florida my goal is to keep you informed of any recent news regarding not only short sales but also foreclosures.
FORECLOSURE CAN BE AVOIDED!
A short sale helps people who are in a situation in which the current value of their home is less than the mortgage owned on it.
Basic HAFA (Home Affordable Foreclosure Alternatives) eligibility criteria are the same as those for the HAMP loan modification program. Note: if eligible, borrower will most often be evaluated for a HAMP loan modification before a HAFA short sale or deed-in-lieu is offered. Borrower may deny modification and move direct to foreclosure alternatives.
Borrower must meet all of the conditions following:
- Must be borrower's principal residence
- Property must be owner occupied
- Loan must be delinquent or default reasonably foreseeable
- First loan must have originated on or before January 1, 2009
- Borrower's 1st loan monthly mortgage payment (PITI & HOA fees) must be greater than 31% of their gross income
- Borrower's current unpaid 1st loan principal balance is equal to or less than $729,750 (1 unit)
The three most important benefits of a short sale are:
- The Mandated debt forgiveness by loan investors with liens on the property. This allows those who qualify and complete the HAFA transaction to walk away DEBT FREE
- A minimum of $3000 towards relocation
- The Mortgage Forgiveness Debt Relief Act has been EXTENDED THROUGH 2013. Homeowners who sell their primary residence in a short sale or lose their home to foreclosure will not have to pay taxes on the loss up to $2 million ($1 million if married filing separately).
On 10/3/2013 HUD announced FHA New Short Sale Requirements:
- Borrower cannot list with or sell the home to anyone with whom they are related or have a close personal or business relationship. In legal terms, it must be an "arm's-length" transaction. Any knowing violation of the arm's-length requirement may be a violation of federal law.
- Your mortgage must be in default, on the date the short sale transaction closes.
- Before closing any additional liens against the property must be released.
- For a standard preforeclosure sale, servicers must use a Deficit Income Test to determine a homeowner's financial hardship. Homeowners eligible for a streamlined short sale may not be required to submit financial information or have a financial hardship.
- The appraisal of one's property should be completed within approximately ten business days.
- A cash contribution (a final payment) may be required.
- The revised FHA short sale addendum must be signed and dated.
Please note loans with Fannie Mae and Freddie Mac have a few additional guidelines.
For more information regarding short sales please contact Maribeth Cantwell at 561-262-0898.