"Helping You Find Your Place"
Short Sales Should Become Streamlined by New Plan
Please call me( Janet 530-277-5138) or e-mail JanetFullmer@att.net for an appointment if you or someone you know wants to be educated on their options for Loan Modifications or Short Sales. DO NOT WAIT TOO LONG, as it makes it more difficult to secure the buyer before Foreclosure.
News Flash
Obama Administration Announces Financial Incentives and Uniform Process for Short Sales
The NATIONAL ASSOCIATION OF REALTORS® (NAR) today announced that the Obama Administration
has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives
Program (FAP), part of the administration’s Making Homes Affordable plan.
Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to
have their loans modified on a permanent basis under the Making Home Affordable Loan Modification
Program.
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Home Affordable Modification program, but don’t qualify for a modification or do not successfully
complete the three-month trial period. Before proceeding with a foreclosure, servicers must
determine if a short sale is appropriate.
Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the•
foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000
toward the cost of paying junior lien holders to release their liens (one dollar from the government
for every $2 paid by the investors to the second lien holders).
Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of•
Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use
of the short sale option.
The program will include streamlined and standardized documents, including a Short Sale•
accordance with investor requirements. The price may be determined based on an appraisal or
one or more broker price opinions (BPOs), issued no more than 120 days before the date of the
short sale agreement.
Servicers will independently establish both property value and minimum acceptable net return, in•
market and sell the property, or up to one year, depending on market conditions. Property must be
listed with a licensed real estate professional with experience in the neighborhood. No foreclosure
may take place during the marketing period (at least 90 days) specified in the Short Sale
Agreement.
In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to•
and costs that may be deducted from the sales price. The servicer must agree not to negotiate a
lower commission after an offer has been received.
The Short Sale Agreement must specify the reasonable and customary real estate commissions•
Servicers may not charge fees to borrowers/homeowners for participating in the FAP.•
The program is in effect through 2012.•
servicer in exchange for a release from the debt if the property does not sell within the time allowed
in the Short Sale Agreement (plus any extensions).
Servicers have the option to require the borrower/homeowner to agree to deed the property to the