Government Issues New Short Sale Guidelines
December 11, 2009 by Elad Bushari · Leave a Comment
The U.S. Treasury Department announced a new program that will provide financial incentives to mortgage servicers and borrowers who use a short sale or a deed-in-lieu to avoid foreclosure on a loan facilitated through the Home Affordable Modification Program (HAMP). The new Home Affordable Foreclosure Alternatives Program aims to simplify and streamline the use of short sale and deed-in-lieu options so they are more viable alternatives for borrowers.
The program:
• Uses a borrower’s financial and hardship information collected in conjunction with HAMP to determine eligibility.
• Allows borrowers to receive pre-approved short sale terms prior to the property listing.
• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction of the real estate commission agreed upon in the listing agreement.
• Requires that borrowers be fully released from any future liability for the debt.
• Provides financial incentives to borrowers, servicers and investors.
The guidelines become effective April 5, 2010. A complete description of the program can be found on the HAMP Web site.
the Broker of Bushari Group Real Estate, a boutique luxury real estate firm specializing in the metro Boston area, Cambridge and Brookline. Elad believes in superb customer service and strives to exceed expectations at every opportunity. Elad was one of the top 30 brokers in the nation under 30 years old (Realtor Magazine, June 2009) and one of the top 25 Real Estate Agents in the metro Boston area in 2008 (according to MLS PIN). In his free time, Elad enjoys snowboarding, scuba diving and is an avid world traveler. Elad can be reached at (617) 529-7079.