Treasury sets guidance to simplify “short sales”
Filed Under Real Estate News, Sellers · Tagged: Home Affordable Foreclosure Alternatives Program, Reuters, Short Sales, US Treasury
By Al Yoon Al Yoon – Mon Nov 30, 6:58 pm ET
NEW YORK (Reuters) – The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed “short sales” of homes and other loan modification alternatives to stem a rising tide of foreclosures.
The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury’s website.
Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.
This is great news for anyone who has been struggling to make their mortgage payments or who simply needs to sell at a time when their home is no longer valued at what they owe for one reason or another (refinanced, surprise relocation, divorce, etc.). If you’re in a short sale situation but have been just hanging on, this may be your opportunity to get out. Maria and I would be happy to help you with this process and help you get moving towards a brighter future.
~Kori
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