Short Sale Incentives

So it sounds like banks are finally starting to figure out that putting some time and effort into accepting some of these many short sales is worth their while because they get far less from a foreclosure.  Which is great timing for them because the government is about to start giving money to everyone to encourage these short sales to go through.

I have personal experience with Bank of America short sales going nowhere simply because they did not have the man power, nor seemed to care.  Suddenly they’ve gotten more organized and more efficient and deals are much more likely to go through.  It’s not smooth sailing yet but at least things are starting to improve.

Having a second mortgage on the property made things even more complicated because the first mortgage holder would want to be repaid in full before the second would get anything.  The second lien holder would end up killing the deal because they would not agree to get paid nothing.  Starting in April, lenders and mortgage investors will be given incentives for agreeing to short sales and avoiding foreclosure.

The home owners will get $3,000 in order to relocate and the mortgage holders will get $1,500 incentive.  A mortgage investor who owns the actual note will get $2,000 for sharing the proceeds of the sale with a second-lien holder and the second-lien holder will get $6,000 for not killing the deal.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they’re willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.

Now the problem will be handling all the new short sales.  Which in fact could be a big problem because they’re already are having trouble keeping up.  But now there is incentive to accept and accept quickly!  This could improve the housing market faster and help a lot of people take less of a hit on their credit score.

http://money.cnn.com/2010/03/29/real_estate/short_sale_explosion/index.htm

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com

March 31, 2010 · Filed Under existing home sales, Financing, Portland, Portland Real Estate, real estate beaverton or, Real Estate Portland, Realty News, Tigard Real Estate News

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