The Balanced Spreadsheet-Financial News, Budget Advice, Debt help, Financial Tips, and other advice

April 5, 2010

New Short Sale Program aimed to speed up the process

Filed under: News Review — Tags: , , , — thebalancedspreadsheet @ 7:49 pm

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With the recent downturn in the housing market a phrase has made its way into mainstream.  That phrase is “Short Sell”.  A Short Sell is when a house is sold for less than what is currently owed on the mortgage and therefore the borrower is “short” of what they owe to the bank.   With an estimated 50% of homes predicted to be underwater by 2011, Short Sales are predicted to increase.  The problem however is that to get a Short Sale approved the bank must first accept it.  Recently banks have been swamped with so many Short Sale requests that many sellers have had to wait weeks even months before hearing back from the bank.

To help speed up the process a new federal program went into effect today called HAFA. 

Some of the highlights include:

-Only available to those who could not get a mortgage modification.

-Must be behind on payments

-A list price from the lender that the lender will accept as a short sale within 30 days of a request.

-Closing within 45 days of offer accepted.

There are disagreements on whether this will help speed up the process any.  Here is a list of articles I have found on the subject.

Columbus Dispatch– New real estate rules streamline process for short sale

Orlando Sun-Sentinel-Will new short sale rules help the housing market?

KGTV-San Diego-New Rules may help relieve Short Sale Pain

Reno Gazette-Journal -New federal program for short home sales starts today

Time will tell if this will help any or not.  Anybody have any good experiences with short sells?

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