Short Sale Process Treasury Program Help: Facilitates Helping Home Owners In The Minneapolis Mortgage Crisis
Treasury Program Facilitates Short Sale Process
U.S. Treasury guidelines regarding short sales are intended to help homeowners avoid foreclosure.
Treasury Program Facilitates Short Sale Program Is Many-faceted:
 It provides incentives to lenders and borrowers for completing Short Sales.
It streamlines and standardizes the documentation necessary for Short Sales.
It limits the ability of subordinate lien-holders to obstruct the Short Sales process.
It sets limits on how long it can take lenders to approve or reject Short Sale requests.
The program has published streamlined and standardized help for Short Sales, including a Short Sale Agreement and Offer Acceptance Letter. This minimizes the complexity of Short Sales, which should significantly increase use of this opportunity.
Incentives to Borrowers
Borrowers who complete a short sale are released from their primary mortgage debt. Additionally, they receive $3,000 for moving expenses.
Incentives for Lenders
The program provides for payments of $1,500 to mortgage servicers and investors for completing a Short Sale - or a deed-in-lieu transaction, in which the deed is simply turned over to the lender.
Standardized Documentation
The program has published streamlined and standardized documentation for short sales, including a Short Sale Agreement and Offer Acceptance Letter. Creating one standard set of documents minimizes the complexity of Short Sales, which should significantly increase use of the option.
Payments Capped to Subordinate Lien-Holders
In the past, some holders of second mortgages blocked short sales by seeking steep payment in exchange for releasing their claim. Under the Treasury guidelines, participating subordinate lien-holders as a group can receive no more than $6,000 from proceeds of the sale.
Time Limits for Short Sales
Lenders have only 10 days to approve or reject a Short Sale - a significant step, since the process often takes so long to complete that numerous transaction fall through. Borrowers are allowed at least 90 days to market and sell their home, with the possibility of additional time based on local market conditions. Marketing can run at the same time as the foreclosure process, but no foreclosure can take place during the marketing period as long as the borrower is acting in good faith to sell the property.
Fannie Mae and Freddie Mac have their own Short Sale guidelines, which are similar to the Treasury program, but different in some respects.
If you've fallen behind on your mortgage payments or received a pre-foreclosure letter from your lender, Home Destination's Short Sale Worksheet can help.
To better how the short sale process treasury program help may apply to your situation, contact Jenna Thuening today.
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