Let's Standardize... in a hurry! Revised Short Sale Program (FAP) - Foreclosure Alternative Program

We are over 1 week into the new program (FAP) - Foreclosure Alternative Program that was passed. It is something that we have needed for a long time. This is a great opportunity for homeowners/borrowers to take advantage of the Short Sale instead of the old nasty word = Foreclosure!

This program will last to the end of 2012 (which by the way of memory is the same that the Debt Forgiveness Bill expires). It is in effect now - new but in effect.

This program has minimum requirements for those homeowners/borrowers that do not qualify for a Loan Modification under the Making Home Affordable Loan Modification Program (MHALMP). Then the buyer will be given the opportunity to enter into a Short Sale Agreement for 3-12 months (depending on the market conditions) and if that fails the Servicer has the option to expect the homeowners/borrowers to do a Deed-in-Lieu of Foreclosure in order to get a debt forgiveness.

There will be standardized documentation, the banks will be offered incentives to participate in this program, the homeowners will not be charged fees, every homeowner/borrower that falls into this category will be given the same opportunities and they have a couple of options instead of foreclosure.

Agents, this maybe better for us - no negotiation from the standard commission, and agent out of pocket expenses can be paid from the sales price, after an offer has been received, 3-12 months to sell the property and all we are expected to have is knowledge of the community/area where we are listing the short sales. The Servicers will be setting the sales price based (Appraisals, BPOS) on market value - so if the market continues to be screwed up we can't take the balance for bad pricing!

This new system will add more income flow for the agents by adding more BPO possibilities for the income substitute.

I take my hat off to Obama and his administration for this plan ~ it is the best on the table to improve the Short Sale process and hopefully it is set up to help cure the market condition.

Thank you Obama!

Agents lets work on getting this news out to the public & see who we can help out!

UPDATE:

Here are some links to check out.

National Association of REALTORS® Government Affairs Division

About FAP:

Making Home Affordable:

Visit www.treasury.gov for detailed information on the program changes.

WEBSITE: http://www.motheranddaughterrealtyteam.com

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Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties. Our aggressive marketing plan includes on-line listing advertising.

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If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.