Government Announces Short Sales Guidelines

By
Real Estate Agent with RE/MAX CENTRAL

Government Announces Short Sales Guidelines


The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

To qualify under these new guidelines:

  • The property must be the home owner's principal residence.
  • The home owner must be delinquent on the mortgage or close to defaulting.
  • The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
  • The borrowers' total monthly mortgage payment must exceed 31 percent of their before-tax income.


Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

 

If you are interested in short selling your home or have any questions please contact me:

Kimberly Dearth

Prominent Realty Group

(702)265-6329

Kimberly@VegasLifestyleHomes.com

www.VegasLifestyleHomes.com



Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)

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Rainmaker
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Doug Jones
Mortgage Magic - San Jose, CA
Mortgage Broker - NMLS 286668

Thanks..guess this is  a special program..we just negotiated two non owner short sales..

Dec 02, 2009 06:56 PM #1
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Rainmaker
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Kimberly Dearth

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