Short Sales Good News for Stockon Home Owners
Good news for those home owners underwater in their mortgages. For many buyers and home owner short sales have been frustrating; with their long wait times for approval. Loan modifications have been equally frustrating. Short sales can have the effect of preserving the home owners’ credit rating. Lenders still suffer large losses but with short sales they usually have a better outcome for the community, lender and home owner. When a home goes into foreclosure it usually stays vacant for a long period of time and the home suffers from maintenance issues and is a magnet for vandalism and squatting.
The US treasury has issued new guide lines to mortgage companies to improve approval times and to reduce foreclosures.
The new requirements include the following guidelines:
- Transaction must fully release the borrower from the debt
- Mortgage servicers have 10 days to approve a short sale
- 2nd lien holders or lenders to be capped at $3,000
The treasury is just not issuing requirements they are also offering incentives. They have expanded their HAMP program to short sales. The home owner would receive $1,500 in relocation expenses, $1,000 to mortgage servicers, $1,000 to investors who agree on payments to junior lien holders.
In terms of best practices and common sense these new requirements and incentives should help the home owner, buyers and the community and clear the deck to close many more short sales and help return the market to normality.
The Hugh Lilly Real Estate Group at PMZ Real Estate is short sale certified and has successfully negotiated a number of short sales. We’re committed to delivering helping the home owners in the communities of Stockton, Lodi, Lathrop, Tracy and Manteca. Call Hugh at 209-479-9222 for your private consultation or email us at hlilly@pmz.com.