Friday, July 10, 2009
Incentives and procedures for short sales
The administration announced incentives and procedures for short sales under its new Foreclosure Alternatives Program. This program is for borrowers who can't retain their home under the Making Home Affordable Loan Mod Program, the loan servicer (this is who you make your payment to) may consider a short sale or if that's not successful, the borrower can try a deed in lieu of foreclosure. Before proceeding with a foreclosure, servicers MUST determine if a short sale is appropriate. INCENTIVES: $1,000.00 TO SERVICERS FOR A SUCCESSFUL SHORT SALE AND $1500.00 FOR HOMEOWNERS TO HELP WITH RELOCATION EXPENSES AND UP TO $1,000.00 TO PAYING JUNIOR LIEN HOLDERS. The goal is to minimize complexity and increase use of the short sale option. There is more to this, but these are the highlights. In other words, short sales are cheaper for the lenders and easier for the homeowner.