New Short Sale Program Should Simplify Home Sales

New Short Sale Program Should Simplify Home Sales

Short sales are not scary. They are just business as usual in today's economy. A short sale is an arrangement between the current home owner and their mortgage company. The mortgage company agrees to accept a buyer's offer that is less than the total amount owed to pay off the home.

Slumping housing prices and surging unemployment have brought on a wave of foreclosures

A short sale is simply the most economical solution to a problem. Mortgage companies will incur a smaller financial loss than from a foreclosure and borrowers are able to minimize the damage to their credit standing. In a short sale, the mortgage company agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower.

Do you owe more than your house is worth?

Do you want to minimize damage to your credit?

Did you experience loss of income?

Do you want to avoid or stop a foreclosure and get a fresh start?

Currently lenders have loss mitigation departments that evaluate potential short sale transactions. Patience is required of the buyers and sellers while waiting to receive a response from lenders, which may take weeks due to work loads.

Now, however, a new government program may make for shorter wait times and a smoother process.

Foreclosure Alternatives

The government's Home Affordable Foreclosure Alternatives (HAFA) program goes into effect April 5, 2010.

Here is how the HAFA program is expected to improve the short-sale process:

• Borrowers will receive pre-approved short-sale terms before listing the property with a real estate company, including a list price approved by the mortgage company. That way, sellers know what lenders will accept before listing the property.
• There will be set deadlines to keep the short-sale process moving.
• Up to $3,000 of the sale will be available to compensate the lenders of second mortgages, if applicable.

This could create a haggle-free home buying environment, since the minimum accepted price will already be known. Sort of like shopping at a retail store....you pay the price on the label.

Another improvement in the process is allowing the use of .PDF documents by e-mail instead of faxing (which is sooooo ‘80s anyway). Bank of America and GMAC Mortgage are already allowing this.

Like every new program there will be bumps along the way, but I believe the era of the 60+ day short sale are coming to an end.

If you find yourself facing foreclosure from your mortgage company and you want to save your credit rating contact me for short sale information.

If you are a home buyer or investor looking for a short sale purchase contact me for a complete list of short sale properties or foreclosed homes in the greater Columbia SC area.

Terry Edwards tedwards@sc.rr.com 803 920 5327

www.FeaturedColumbiaHomes.com

Hopkins Rosewood Shandon Lake Katherine Forest Acres

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New Short Sale Program Should Simplify Home Sales