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Stop Foreclosure with New Short Sale Regulations

April 2, 2010

 

Short Sales have gained a reputation of being long, frustrating, and unpredictable as mortgage servicers approve some sales and drag their feet on others without ever giving anyone direct information about what they want. For home owners who want to stop foreclosure, new guidelines provide a system and incentives.

On April 5, 2010, the Treasury Department’s HAFA (Home Affordable Foreclosure Alternatives) guidelines go into effect for mortgage servicers who are part of the HAMP (Home Affordable Modification Program). It is the purpose of the guidelines to make Short Sale, and Deed in Lieu of Foreclosure, process uniform and timely.

These guidelines are for 1st mortgages which are not owned or guaranteed by Fannie Mae or Freddie Mac. Fannie and Freddie guidelines are due out soon.

The borrower must be a home owner, not an investor.

The borrower needs to apply to their mortgage services for a loan modification or directly for a short sale or DIL (deed in lieu).

The mortgage servicers will give the borrower and their real estate agent with an agreement that indicates the net payoff that they want and the closing costs that they will pay.

The borrower must then list the property for sale, there will be no FSBO’s allowed. The new buyer cannot be related to the borrower, nor can they rent or lease back the property to the borrower.

The lenders will have 10 days to review and approve Agreement of Sale package.

There are incentives for the 1st lender to provide for a payoff to the 2nd lender to release their lien.

There are incentives for the services to process the short sale.

There is an incentive to help the borrower to move.

If you are having trouble paying your mortgage, or have to move and owe more than the present value of your property, you may be eligible for a Short Sale or a DIL.

You can contact me for more information.

Kathleen Sheridan, Realtor®

Short Sale Specialist

Weichert, Realtors® – McCarthy Associates

Office: 215-843-1414 ext 230

Direct: 215-740-3320

email: ksheridanrealtor@gmail.com

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2 Comments leave one →
  1. April 2, 2010 5:04 pm

    I’m interested in finding out how many people are using the internet to find deals?

    • April 2, 2010 5:23 pm

      Our Weichert statistics tell us that over 70% of buyers start with the internet. What kind of a deal are you looking for?

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