Federal guidelines for Short Sales released!

Foreclosures, Short Sales, Tax Foreclosures
1

Not sure if everyone saw this yet.

Here is the actual PDF link of the Home Affordable Short Sale program:
https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Here is a WSJ article on it:
http://online.wsj.com/article/SB125963239592170665.html

And here are the highlights:

* Who
      o Must be the homeowner’s principal residence.
      o The homeowner is delinquent on the mortgage, or default is imminent
      o The loan was made before Jan. 1 this year and is less than $729,750
      o The borrowers’ total monthly mortgage payment exceeds 31 percent of their pre-tax income

* What
      o Deadlines
      o Standardized Paperwork
      o $1000 to lenders
      o $1500 to sellers for moving costs
      o Up to $3k for subordinate lienholders
      o No foreclosure can occur during the short sale agreement period
      o Mortgage servicers may not lower real estate agent commissions

* When
      o 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… how do you guys think this will work out? :cool

2

good stuff. hopefully this will help all of us buy more of these homes with short sale as the game plan.

3

I did some more research into it and there are some downsides for investors. A big one is that buyers need to keep the house for 90 days (this was to prevent flipping)

4

yep. but I’m sure their is a way for us to still do these days…I hear from emails I recieve that some of the same dasy funding deals or wking on giving us the ability to close these FHA by funding for the 90 days. It’s still up in the air.

5

For every law there is a loop hole! I personally am not even worried about the changes. They are not a huge deal at all. Then again I don’t do Short Sales the normal way. The only reason that you have to worry is if you are trying to still double close on these deals and not using your own money or loan to do this. There are ways to do this where you don’t worry about the 90 day rule and make money every month for 30 years… Think outside the box!