Short Sales Might Get Easier Under New Plan

Short Sales have become commonplace in Pleasanton, Dublin, San Ramon, and the Tri-Valley. The Treasury outlined a new plan on December 1 to help streamline short sales in an attempt to make it easier for some distressed borrowers to use this method to sell their homes.

A short sale occurs when a lender or investor agrees to accept less than the amount of the mortgage out of the proceeds from selling the house. Borrowers who can’t qualify for a loan modification, due to a lost job or other circumstances, can utilize a short sale to head off a foreclosure. The process can be tricky but a good real estate agent can help you through the steps.

According to , the Obama Administrations plan offers help in several ways.

Besides requiring lenders and servicers to use uniform documentation, preapproved terms and accelerated turnaround times, the plan also provides financial incentives:

– Homeowners who successfully complete a short sale under the program receive $1,500 to defray relocation costs.

– Mortgage servicers can receive $1,000 per case.

– Investors get $1,000.

– Second-lien holders receive up to $3,000 from the sale proceeds.

Even real estate agents get something: The rules prohibit banks from forcing them to cut their commissions from the listing agreement as part of the final deal.

Many distressed homeowners may be able to benefit from this new program. There are obstacles that may prevent some borrowers from being able to participate. If you are under financial pressure or looking at the possibility of foreclosure, give me a call. I can help you identify your options, and help you navigate the twists and turns of the short sale process if that is your best course of action.