Can this be true? It may be starting April 5th, 2010.
U.S. Treasury department is going to require that any bank receiving federal assistance will have only 10 days to respond to short sale offers presented to them.
In order to be considered for the HAFA program:
- The home must be the principle residence of the homeowner.
- The first mortgage must have taken out on or before January 1, 2009.
- The mortgage is delinquent of will be in the foreseeable future- showing impending delinquency.
- The unpaid balance owed on the first mortgage can not be more than $729,750.
- The monthly mortgage payment has to be more than 31 percent of the homeowners gross income.
This is great news for buyers since more than half the inventory out there are short sales, so this will help deter some of the competition. Not to mention, there are some good incentives for the Bank and the Seller too! The seller will receive $1,500 to assist in moving costs. The bank will receive $1,000 to help offset processing costs and another $1,000 if they offer the second mortgage incentives, up to $3,000. This should help resolve the recent issues with some second mortgages, who hold up the Short Sale for a bigger payout or sometimes cash under the table.
Hopefully we’ll see the benefits of this program sooner than later. For buyers, by adding more homes to choose from. For sellers, by allowing them the option to sell short with incentives. For banks, by off loading delinquent mortgages from their books & stabilizing home values in local markets with high demand.
What do you think? Do you need help with a short sale or know someone who does? For more answers, contact me (760)593-7393 or firstname.lastname@example.org