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

www.righttracfg.com

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Tags:
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Rainer
154,981
Andrew Capelli
Fidelity National Title - Troy, MI

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

Jun 04, 2012 01:01 PM #1
Rainmaker
1,831,492
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO

Joe

That's a step in the right direction.

Good luck and success.

Lou Ludwig

Jun 04, 2012 04:19 PM #2
Rainmaker
839,542
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Hi Joe.

It looks like promising news.

Jun 04, 2012 04:35 PM #3
Ambassador
1,944,197
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

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.

Jun 04, 2012 05:25 PM #4
Rainer
229,136
Linda Urbick
Keller Williams Realty - San Ramon, CA
San Ramon, CA Homes for Sale - 925.415.3046

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.

Jun 04, 2012 07:15 PM #5
Rainmaker
980,979
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

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

Sharon

Jun 04, 2012 07:50 PM #6
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