MatthewHohnberger.Com

Finally a plan that I believe will really WORK! The U.S. Treasury Department on Monday released a plan to speed up and encourage Short Sales as a means to help families avoid foreclosure. We’ve been offering Short Sale proposals to public officials for over a year, and although the new guidelines aren’t everything we were hoping for, they do represent a significant improvement over the current situation.

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days! Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

This is one of the best steps in helping home owners I have seen yet! Here is a quick outline of the plan. To view in detail please see one of the two links below – longer or shorter version depending on your preference.

1. $1,500 to borrowers from the government for selling by short sale

2. $1,000 to Mortgage servicing company for each completed short sale

3. $3,000 of the sale proceeds to 2^nd lien holders in exchange for releasing their liens

4. $1,000 to 1^st lien holder for allowing $3,000 payments to 2^nd lien holders

5.  Borrowers who complete a short sale under the program must be “fully released” from future liability for the debt!
Reuters news story – Long Version

http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales

Wall Street Journal – Shorter Version

http://online.wsj.com/article_email/SB125963239592170665-lMyQjAxMDI5NTA5MTYwMzEyWj.html

Posted on December 3rd, 2009 by Matthew
Filed under: Uncategorized