Just a few days ago Kenneth Harney, a nationally syndicated real estate columnist reported in the Washington Post, that those home owners in trouble on their mortgage and can't get a loan modification, there may be light at the end of the tunnel for them. The Obama administration is adopting...or probably more appropriately..."will try to adopt" a new standard for short sales. The plan is essentially designed to assist short sellers speed up the process of what is traditionally "contentious" and incredibly time-consuming.
As a refresher, a Short Sale involves a lender or investor agreeing to collect less than the balance owed on a mortgage debt out of the proceeds of a negotiated sale of the property. A Short Sale can be looked upon as the last dying breath of an attempt avoid foreclosure for a distressed home owner.
Here are a few important points to remember for anyone considering a Short Sale. First, it is very important to see if the lender will accept a short sale. The lender will basically run the numbers to see if a short sale will yield more money at the bottom line than a foreclosure. So here's what to do: Contact a Realtor (I have a great one in mind...ME) who can put together the key information needed by the lender i.e. recent comparables on CLOSED sales, local market trends, and the likely selling price of your house. At this point, you'll want to have a buyer identified for the property, a buyer who'll pay a price acceptable to the lender and has financing to close the deal.
Before adopting the new plan to stream line the short sale process, short sales could take months to close. Now, Lenders and Service providers will be required to use preapproved Short Sale uniform documentation and accelerated turn around times. The plan also provides financial incentives for key players. Here is a sampling of incentives:
*Homeowners who successfully complete a short sale under the new program receive $1,500 to defray relocation costs.
*Mortgage providers can receive $1,000 per case.
*Second-lien holders receive up to $3,000 from the sale proceeds.
*Even Realtors are in the mix with rules prohibiting lenders from forcing them to cut commissions.
According to Harney, although Major Lenders are still studying the fine print the initial reaction seems to be positive.
Bob Chase Realtor Windermere Real Estate www.thechaseadvantage.com
No comments:
Post a Comment
I would be pleased to learn what you have to say...thanks