Uniform Short Sales Guidelines are Coming

Fortunately, it appears that things could be improving for short sales.

The recent U.S. Treasury announcement stated that it would be providing more incentives for borrowers and mortgage services to pursue short sales and other foreclosure alternatives.

The incentives and process guidelines are part of a larger program called Making Home Affordable, which is in place to help homeowners avoid losing their home.

This past May, the Treasury proposed that lenders would receive a $1,000 for allowing the owner of a house to sell for less than the amount owed on a mortgage, and than accept the proceeds as full repayment. This also applies to the deed-in-lieu transaction, where a lender would receive $1,000 when the deed is transferred to the lender in place of going through a costly foreclosure.

In addition, borrowers who agree to short sales or deed-in-lieu deals can receive up to $1,500 in closing costs. The Treasury also said it will pay second lien holders up to $1,000 to relinquish their claims in such transactions.

Source: http://www.reuters.com/article/GCA-Housing/idUSTRE5916X220091002

For more great information go to First Time Home Buyers Are Leading The Way.

To find out all the benefits and options for preventing foreclosure, contact Eddie Perez, Broker-REALTOR, CDPE or Anoir Redouane, REALTOR, CDPE. Their market includes Hoboken, Jersey City, Weehawken and Union City. They can be reached at eddie@InvestHoboken.com or 201-344-2886.