SHORT SALES GET A BOOST

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Short Sales Get a Boost”

Second mortgage holders have always been a problem, when it comes to getting a short sale approved and understandably so. They can now get up to $8,500. The treasury increased the amount that the second mortgage holder can receive by $2,500.

Short Sales Get a BoostThis is welcome news to the real estate community. Maybe now some of the short sales that have been held up can now get completed. Hopefully, this will speed up the process as well!

Treasury Change on Second Lien Release Could Boost Short Sales

By: Brian Collins

The Treasury Department’s decision to raise the amount servicers can pay second-mortgage holders for a lien release should give its short sales program a boost, according to an industry expert.

Second-lien holders can veto any short sale so Treasury raised the buyout limit by $2,500 to $8,500 in March along with other improvements to its Home Affordable Foreclosure Alternatives program.

“HAFA is really a nice program at this point,” said Travis Olsen, co-president of Loan Resolution Corp.

Since its rollout in the spring of 2010, servicers have completed 40,000 HAFA short sales. However, “the numbers have picked up a lot in the last year,” Olsen told National Mortgage News.

With the increase in the second-lien payoff limit, Olsen sees much more HAFA activity coming down the road.

“I can see numbers doubling from 40,000 to 80,000 in closed short sales in a year,” Olsen said.

image: digitalart/freedigitalphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

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Topic:
ActiveRain Community
Location:
Connecticut
Groups:
Mortgage Solutions
Wake Up Brokers
Connecticut Professionals
Consumer Mortgage Tips
All About Mortgages/Mortgage Networking
Tags:
hafa
treasury
lien
real estate industry
second mortgage
short sales

Comments 6 New Comment

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Show All Comments
Rainer
143,579
Andrew Capelli
Fidelity National Title

Joe: That is welcome news.  I have seen a fair amount of short sale transactions held hostage by second lien holders.  Thanks for sharing!

June 04, 2012 01:01 PM
Rainmaker
1,670,328
Lou Ludwig
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO
Ludwig & Associates

Joe

That's a step in the right direction.

Good luck and success.

Lou Ludwig

June 04, 2012 04:19 PM
Rainmaker
839,534
Joshua Zargari
MJ Decorators Workshop
MJ Decorators Workshop LI staging and home decorating

Hi Joe.

It looks like promising news.

June 04, 2012 04:35 PM
Ambassador
1,797,256
George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Joe, I got a Borrower right now that is purchasing a Short Sale, and the second lien holder is only owed $3,000 and is holding everything up.  I guess the figure they have very little to lose so why not play hard ball.

June 04, 2012 05:25 PM
Rainer
229,086
Linda Urbick
San Ramon, CA Homes for Sale - 925.415.3046
Keller Williams Realty

Yes this is good news for all involved in a short sale. I've seen many deals that feel apart because the second lien holder wanted more money.

June 04, 2012 07:15 PM
Rainmaker
973,701
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

Joe, this is welcome news. By the time this mess is over, we will have perfected it, right?

Sharon

June 04, 2012 07:50 PM
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Joe Petrowsky

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