10-Day Short Sale Time Limit May Spur Housing Market

January 23, 2010

Residential and General

Short Sales – New U.S. Treasury guidelines that put a 10-day time limit on short sales, and add financial incentives for buyers and sellers could help homeowners on the verge of foreclosure.

Homeowners stuck while banks mull whether to approve short sales could benefit from new federal guidelines that give lenders a top foreclosure cities10-day limit to respond to offers.

The 83 loan servicers participating in the Obama Administration’s Home Affordable Modification Program, including Bank of America and JPMorgan Chase, are required to follow these guidelines for all borrowers who request short sales or who did not complete loan modifications.

Aside from imposing a 10-day deadline, the Treasury rules call for sellers to receive $1,500 moving allowances, and the sellers will not have to repay any of the debt.

Also, lenders will get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing up to $3,000 in short sale proceeds to be distributed to less senior lenders.

Edward Goldfarb of RE/MAX PowerPro Realty in Davie doubts the Treasury will enforce the new rules. “There’s no teeth to them,” he said.

A spokeswoman for the Treasury says it will hand down “substantial” penalties to lenders that don’t comply. The agency said it can fine lenders, withhold or reduce incentive payments and require improperly rejected loans to be modified.

Click on this link to read the  entire article – http://www.miamiherald.com/251/story/1421797-p2.html

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One Response to “10-Day Short Sale Time Limit May Spur Housing Market”

  1. Vadsala Says:

    , I have been a chirstian a long time, Ive led bible sdiutes, youth ministry camps, Mission trips, virgin untill marraige and have led what I thought was a good christian life, but in my mind I just cant justify believing in god because theres no better explanation of all the data as you say. I cant look at all of the religions in the world/have been in the world and think that billions and billions are burning in hell because they interpreted what was going on around them differently then I (or better yet, my parents) do. Its hard for me to rationalize that sort of thing in my mind.

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