Govt making short sales easier? That’s more like it!

[ibjames]

http://abcnews.go.com/Business/Economy/story?id=7585016&page=1

(sorry for not making it a link..)

Treasury Secretary Announces Housing Program Expansion to Make It Easier for Struggling Homeowners to Sell Their Houses

By MATTHEW JAFFE
May 14, 2009
WASHINGTON, D.C.

The Obama administration announced today new measures to help Americans avoid foreclosures.
Timothy Geithner to ramp up housing help today
On May 11, 2009, Rose Inman stands on the walkway of the home she is about to lose in Seattle…. Expand
On May 11, 2009, Rose Inman stands on the walkway of the home she is about to lose in Seattle. Inman has been laid off twice and can no longer afford her $3,100 monthly mortgage payments, and hasn’t had any luck getting her mortgage bill lowered. The Obama administration is expected to expand its mortgage aid program May 14, 2009, announcing new measures that would help homeowners avoid a blemished credit record even if they don’t qualify for other assistance.

Treasury Secretary Tim Geithner unveiled plans to help borrowers sell their homes for less than what they owe — known as “short sales” — by providing incentives for more lenders to accept such sales. Borrowers could also give their homes to lenders to get rid of a delinquent loan, another way to prevent foreclosure proceedings.

“As unemployment rises and as Americans still face a deep and challenging set of problems, you’re seeing the rate of distress still growing in this country and that’s why it’s so important that we do everything we can to try to get assistance to people who need it,” Geithner said Tuesday at the National Community Reinvestment Coalition in Washington.

The administration also announced a $10 billion insurance plan to protect lenders from losses stemming from the drop in home prices.

The new efforts are aimed at helping those who otherwise hadn’t qualified for the administration’s Making Home Affordable program.

The $50 billion mortgage aid program, launched almost three months ago, has been criticized for taking too long to start and not helping enough homeowners. But today Geithner and Housing and Urban Development Secretary Shaun Donovan emphasized that a great deal of progress has already been made, noting that 55,000 modification offers have been sent to qualifying homeowners.

“We’re seeing the first signs of homeowners being able to take advantage of lower monthly payments that the program makes possible,” Geithner said.

“The country’s been in the recession for a long time and people want to see progress quickly,” he noted. “And we are seeing a lot of progress in a very short period of time.”

The Treasury chief said that refinancing applications have surged nationwide since the program was announced and are up 70 percent since President Obama outlined the plan.

Donovan echoed the sentiment.

“We have already seen more than a million families benefit from refinancing since the plan was announced,” he said. “…I think we’re ahead of any prior efforts at this point.”

Accompanying Geithner and Donovan were two homeowners participating in loan modifications, including Warren Rohn, of Lewiston, Calif., who had to close his trucking business last year.

Thanks to the government program, Rohn was able to avoid foreclosure and modify his loan with Wells Fargo to 2 percent for the next five years, he said.

“Let me put it simply – well, this program saved my bacon, I don’t know how else to put it,” Rohn said with a laugh.

His wife, stricken with cancer, had a lung removed just three weeks ago, but the housing help has relieved at least one concern hanging over his head.

“The program works – it’s made a real difference in my life and it’s given me and my wife the security to know that we will have a home,” he said.

[jpinpb]

It will be a nice incentive for the banks to agree to short sales. I just wonder what Rohn is going to do in 5 years. Can keeps getting kicked. Hopefully he has a plan.

[jpinpb]

It will be a nice incentive for the banks to agree to short sales. I just wonder what Rohn is going to do in 5 years. Can keeps getting kicked. Hopefully he has a plan.

[jpinpb]

It will be a nice incentive for the banks to agree to short sales. I just wonder what Rohn is going to do in 5 years. Can keeps getting kicked. Hopefully he has a plan.

[jpinpb]

It will be a nice incentive for the banks to agree to short sales. I just wonder what Rohn is going to do in 5 years. Can keeps getting kicked. Hopefully he has a plan.

[jpinpb]

It will be a nice incentive for the banks to agree to short sales. I just wonder what Rohn is going to do in 5 years. Can keeps getting kicked. Hopefully he has a plan.

[danthedart]

maybe in 5 year he won’t have to pay the medical bills for his wife’s cancer?

[danthedart]

maybe in 5 year he won’t have to pay the medical bills for his wife’s cancer?

[danthedart]

maybe in 5 year he won’t have to pay the medical bills for his wife’s cancer?

[danthedart]

maybe in 5 year he won’t have to pay the medical bills for his wife’s cancer?

[danthedart]

maybe in 5 year he won’t have to pay the medical bills for his wife’s cancer?

[NotCranky]

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Welcome to C.A.R.’s Market Matters, your weekly market response guide.

To access a version specifically for matt ed for consumers that you can print, share via e-mail, or post on your Web site, please click here.

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 Home 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.

· Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the 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.

· Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of 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).

· The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

· Servicers will independently establish both property value and minimum acceptable net return, in 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.

· In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to 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.

· The Short Sale Agreement must specify the reasonable and customary real estate commissions 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.

· Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

· The program is in effect through 2012.

· Servicers have the option to require the borrower/homeowner to agree to deed the property to the 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).

[NotCranky]

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Welcome to C.A.R.’s Market Matters, your weekly market response guide.

To access a version specifically for matt ed for consumers that you can print, share via e-mail, or post on your Web site, please click here.

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 Home 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.

· Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the 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.

· Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of 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).

· The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

· Servicers will independently establish both property value and minimum acceptable net return, in 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.

· In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to 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.

· The Short Sale Agreement must specify the reasonable and customary real estate commissions 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.

· Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

· The program is in effect through 2012.

· Servicers have the option to require the borrower/homeowner to agree to deed the property to the 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).

[NotCranky]

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Welcome to C.A.R.’s Market Matters, your weekly market response guide.

To access a version specifically for matt ed for consumers that you can print, share via e-mail, or post on your Web site, please click here.

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 Home 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.

· Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the 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.

· Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of 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).

· The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

· Servicers will independently establish both property value and minimum acceptable net return, in 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.

· In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to 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.

· The Short Sale Agreement must specify the reasonable and customary real estate commissions 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.

· Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

· The program is in effect through 2012.

· Servicers have the option to require the borrower/homeowner to agree to deed the property to the 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).

[NotCranky]

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Welcome to C.A.R.’s Market Matters, your weekly market response guide.

To access a version specifically for matt ed for consumers that you can print, share via e-mail, or post on your Web site, please click here.

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 Home 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.

· Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the 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.

· Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of 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).

· The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

· Servicers will independently establish both property value and minimum acceptable net return, in 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.

· In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to 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.

· The Short Sale Agreement must specify the reasonable and customary real estate commissions 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.

· Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

· The program is in effect through 2012.

· Servicers have the option to require the borrower/homeowner to agree to deed the property to the 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).

[Author]

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