I wonder if the new guidelines for short sales will help. These are supposed to start up April. Now these are the HAFA guidelines so these guidelines DO NOT apply to loans owned by Fannie or Freddie. However both Fannie and Freddie will be coming out with their own guidelines.
The goal is pretty simple, increase short sales (by decreasing processing time) and increase deeds in lieu of foreclosure.
Some of the main points:
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).
• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed.)
• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors.
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on Dec. 31, 2012.
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To qualify the homeowner must
■The property must be the homeowner’s principal residence.
■The homeowner is delinquent on the mortgage or default looks likely. Homeowner is insolvent.
■The loan was made before Jan. 1 this year and is less than $729,750
■The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.
I do believe Fannie/Freddie are also or have already issued guidelines in line with HAFA which is part of HAMP.
Our short sale expert can clarify. Alternately I would encourage people to browse on line to check out the announcements which were made at the beginning of December.
So if a party has refi’d (turning their loan recourse) and this happens, they first mortgage is now non-recourse in a short sale? It might make more people willing to do short sales….
Another question – does their tax obligation from the short sale go away? (I assume not.)
So if a party has refi’d (turning their loan recourse) and this happens, they first mortgage is now non-recourse in a short sale? It might make more people willing to do short sales….
Another question – does their tax obligation from the short sale go away? (I assume not.)
So if a party has refi’d (turning their loan recourse) and this happens, they first mortgage is now non-recourse in a short sale? It might make more people willing to do short sales….
Another question – does their tax obligation from the short sale go away? (I assume not.)
So if a party has refi’d (turning their loan recourse) and this happens, they first mortgage is now non-recourse in a short sale? It might make more people willing to do short sales….
Another question – does their tax obligation from the short sale go away? (I assume not.)
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