Tucson Breaking News “New Short Sale Guidelines Anounced By Treasury”
New Short Sale Guidelines Announced By Treasury on
Tucson Local News
Monday the U.S. Treasury Department’s announced the long-awaited guidelines to streamline Short Sales. According to Don Vallee with RE/MAX Excalibur this will have a significant impact on families facing foreclosure.
“While the plan doesn’t include all of our suggestions, we feel it’s a big step in the right direction,” Liniger says. “These new policies will make Short Sales much more attractive to our clients and much easier for us to complete.”
• Watch a Dave Liniger video about the guidelines.
• Read a Reuters news article about the Treasury plan.
• Check out “www.FindTucsonShortSales.com,” and
• Get Short Sale information from NAR’s REALTOR.org site, including details on HAFA.
• Download a HAMP press release.
• Download a HAMP Supplemental Directive that spells out the details.
With unemployment over 10 percent and millions of adjustable-rate mortgages primed to reset next year, a “tsunami” of distressed properties could be on the horizon, Liniger says. The new guidelines, as well as a growing acceptance by lenders and second-lien holders, give homeowners a better chance of closing a Short Sale rather than losing their house to foreclosure.
Here are some of the program’s key guidelines (download the program’s full details in the HAMP Supplemental Directive):
• Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
• The seller will be released from all liability for repayment of the mortgage debt.
• Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
• The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
• The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
• The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.
• The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.
In September, Dave Liniger met with Housing and Urban Development Secretary Shaun Donovan and other U.S. housing officials to discuss the need for prompt action. A meeting with Sen. Harry Reid (D-Nev.) also moved the process along.
As Tucson Short Sale Specialists and Certified Distressed Property Experts, CDPE we have been advocating Short Sale over Foreclosure for some time. We have the training in Short Sales and REOs, and this education will continue to play a vital role in order for our team to successfully handle Short Sale transactions.
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