Things had to get easier sooner or later. What we’ve got so far (as of last Monday) is a new government incentive to expedite short sales.
What it will do:
- The government will give $3000 toward moving expenses to the sellers in the short sale deal or to those who agree to a deed in lieu of foreclosure. This will certainly assist the distressed homeowners who don’t quite qualify for the mortgage modification program.
- Mortgage companies will have to pre-determine the minimum bid prior to the listing of the home. If the offer is greater, it must be accepted by the lender. This is expected to accelerate the process dramatically.
Overall, these measures should make more short sales (which typically yield a higher sale price than foreclosures) possible.
Qualification Restrictions:
- The home needs to be a borrower’s primary residence.
- The homeowner has to be either: behind on his or her mortgage or on the verge of becoming delinquent.
- The program is currently not available for mortgages owned or guaranteed by either Fannie Mae or Freddie Mac.
So we’ll keep you posted on the latest as we get confirmation on additional changes. It looks like we may be moving in the right direction here; call us if you have any questions.