“Short Sales” Treasury Releases Guidance for Making Home Affordable Short Sales Las Vegas, Henderson Nevada
The Treasury Department laid out finalized guidelines for carrying out short sales under the Making Home Affordable program.
The administration is urging participating servicers to follow through with short sales as an alternative to foreclosure for those homeowners that don’t qualify for a reworked mortgage under the Home Affordable Modification Program (HAMP). Wadkins Home Team 702-307-4070 ext 107 Steve Wadkins Realtor® ReMax Associates, Henderson Nevada. www.VegasShortSaleHomes.com
To entice servicers to accept a sale on defaulted properties for less than the outstanding mortgage balance, Treasury is offering incentive payments of $1,000 per completed short sale.
Homeowners who agree to a short sale or deed-in-lieu of foreclosure will get up to $1,500 to help with relocation, and must be “fully released” from any future liability, according to the guidelines.
The Home Affordable Foreclosure Alternatives Program (HAFA), as it is being called by the Treasury, but was delayed because of concerns over legalities involved in the process and the rights of second lien holders to hold claim over the property. DSNews.com reported in October that the administration was readying guidelines for the program, and yesterday, they arrived.
Under the terms of the program, once a servicer determines a homeowner does not qualify for a modification, the servicer has a 30-day window in which the borrower must be considered for the HFHA program. Each participating servicer is required to develop a written policy, consistent with investor guidelines, that describes the basis on which the servicer will offer the HAFA program to borrowers.
Every potentially eligible borrower must be considered for HAFA before the borrower’s loan is referred to foreclosure or the servicer allows a pending foreclosure to sale to go through.
The servicer must assess the current value of the property, independent of the borrower and any other parties to the transaction.
The HAFA program becomes effective April 5, 2010, but the Treasury said participating servicers may elect to implement the program earlier.
Article by DS News.
Steve & Gerri Wadkins-Realtors® ReMax Associates Henderson Nevada 702-307-4070 ext 107