Some more details are emerging on the upcoming Treasure Dept. short sale plan!
- Who
- Must be the homeowner’s principal residence.
- The homeowner is delinquent on the mortgage, or default is imminent
- The loan was made before Jan. 1 this year and is less than $729,750
- The borrowers’ total monthly mortgage payment exceeds 31 percent of their pre-tax income
- What
- Deadlines
- Standardized Paperwork
- $1000 to lenders
- $1500 to sellers for moving costs
- Up to $3k for subordinate lienholders
- No foreclosure can occur during the short sale agreement period
- Mortgage servicers may not lower real estate agent commissions
- When
- April 2010
This all looks promising. The real question is going to be how much bank uptake of this occurs. Improving turnaround time, preventing foreclosure while the short sale process is in motion, and providing incentives to the banks and reimbursing moving expenses are all great goals. Post your thoughts in the comments!
