I am very excited about news coming down the pike as a Realtor and my happy news may well be good news for would be buyers and sellers of short sales. When someone calls me about a home and I, through gritted teeth, tell them that it is a short sale, I can just hear their eyes rolling in their head. Hopefully these new Treasury proposed guidelines will help us all.
The main reason for the gritting of teeth and the eye rolling is the unsure outcome and the long time frame in waiting for the bank to give us an answer on a short sale. The new guidelines proposed by the federal government for short sales will address this issue. The new rules will give lenders a 10 day limit to respond to offers, free borrowers from dept and even provide financial incentives to lenders.
As the housing slump enters its fifth year these guidelines should factor into helping us see the light at the end of our tunnel. To speed up the process the U. S. Treasury is calling for lenders to respond to short sale offers within 10 business days. Sellers would be eligible for $1500 in moving allowances and they will not be strapped with repayment of any dept.
To further encourage banks, lenders will get $1,000 to cover administrative 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. Loan servicers participating in the Obama Administrations Home Affordable Modification Program are required to follow the guidelines.
The plan that must be implemented by lenders no later than April may be too late for my short sale that has been waiting on a decision since last April. We have gone through 3 buyers and it looks like we are at an impasse and off to foreclosure we go even though we have a willing buyer and seller. The first and second position lenders are not being good playmates. It is my hope however that we will see a change for the better. There are some banks that are already doing the responsible thing and working hard to make this painful process as pleasant as possible. You can rest assured that I will be using my brand of getting even with those fellows!!!
So till next week you know the drill by now, “The only people we have to get even with are those that have helped us”…… So get busy and go get even.