Back to Panama City Real Estate News
Days Away From Speedier Short Sales?
By Tina Bass | March 15, 2010
Good news for the homeowner currently “underwater” or on the verge of foreclosure. As of April 5th, 2010, the federal government is setting guidelines for short sales and giving lenders a 10-day limit to respond to offers. The new rules seek to address the many criticisms of short sales and help speed up the process that often drags on as lenders take months to respond to offers.
To speed up the process, the U.S. Treasury is calling for lenders to respond to short sale offers within 10 business days, along with offering incentives such as $1,000 to cover administrative and processing costs. The plan also calls for incentives for the sellers, such as a $1,500 moving allowance. All loan servicers participating in the Obama Administration’s Home Affordable Modification Program are required to follow the guidelines, which must be implemented by lenders no later than April, meant to help sellers make short sales “a more usable tool.”
According to REALTOR(r) Magazine:
Beginning April 5, the Obama administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process.
The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.
Category: Market Updates | No Comments »
Comments are closed.