For those of you looking for the actual bulletin 09-09 put out by Uncle Sam for kicking the servicers in the behind to get them moving on short sales... Here it is!
Short Sale Directive 09-09
I've read all 40+ pages and its a real page turner! Not!
The bottom line - Treasury is asking the banks - as politely and meekly as you would expect - to Please make short sales easier.
Wednesday, December 02, 2009
Tuesday, December 01, 2009
Exciting New Short Sale Rules Coming!
Courtesy Tim Harris and Inman News...
Here is the info:
1- No reduced commissions! Lenders can’t ask or demand brokers lower their fees.
2- Lenders to PRE-APPROVE short sales.
3- Lenders must FULLY RELEASE borrowers from any future obligation (no more deficiency judgment fear!)
4- No more money out of pocket demands from second lien holders….or any payback of the debt what-so-ever.
5- Borrowers who do a short sale will be PAID up to $1500 to do a short sale!
6- Seconds to receive no more than $3,000 TOTAL from the sale.
From Inman News Features:
The Obama administration has released long-awaited guidelines for a program that will provide incentives for loan servicers and homeowners to engage in short sales when borrowers who are eligible for the Home Affordable Modification Program (HAMP) don’t qualify for a loan mod.
The guidelines prohibit loan servicers from demanding that real estate brokerages reduce the commission stated in the listing agreement as a condition of approving a short sale — a practice that’s been a sore point with many real estate agents.
Troubled borrowers interested in exploring a short sale will also be allowed to receive preapproved short-sale terms prior to the property listing, and servicers must agree to fully release them from future liability if the sale goes through.
The incentive program, which includes payments to second-lien holders who often stand in the way of short sales, was announced in May, but issuance of the guidelines was stalled over legal concerns.
Troubled borrowers who agree to a short sale or deed-in-lieu of foreclosure will receive up to $1,500 to assist with their relocation expenses. Loan servicers and investors who sign off on payments to subordinate lien holders will earn up to $1,000 for successfully completing a short sale or deed-in-lieu.
Subordinate lien holders are limited to recovering no more than $3,000 from sale proceeds, although those who object to the cap can engage in short sales outside the program.
Jeff Lischer, the National Association of Realtors’ managing director of regulatory policy, told the groups’ members last month at their annual conference in San Diego that the incentives should make a difference but won’t be a cure-all for foreclosures.
Here is the info:
1- No reduced commissions! Lenders can’t ask or demand brokers lower their fees.
2- Lenders to PRE-APPROVE short sales.
3- Lenders must FULLY RELEASE borrowers from any future obligation (no more deficiency judgment fear!)
4- No more money out of pocket demands from second lien holders….or any payback of the debt what-so-ever.
5- Borrowers who do a short sale will be PAID up to $1500 to do a short sale!
6- Seconds to receive no more than $3,000 TOTAL from the sale.
From Inman News Features:
The Obama administration has released long-awaited guidelines for a program that will provide incentives for loan servicers and homeowners to engage in short sales when borrowers who are eligible for the Home Affordable Modification Program (HAMP) don’t qualify for a loan mod.
The guidelines prohibit loan servicers from demanding that real estate brokerages reduce the commission stated in the listing agreement as a condition of approving a short sale — a practice that’s been a sore point with many real estate agents.
Troubled borrowers interested in exploring a short sale will also be allowed to receive preapproved short-sale terms prior to the property listing, and servicers must agree to fully release them from future liability if the sale goes through.
The incentive program, which includes payments to second-lien holders who often stand in the way of short sales, was announced in May, but issuance of the guidelines was stalled over legal concerns.
Troubled borrowers who agree to a short sale or deed-in-lieu of foreclosure will receive up to $1,500 to assist with their relocation expenses. Loan servicers and investors who sign off on payments to subordinate lien holders will earn up to $1,000 for successfully completing a short sale or deed-in-lieu.
Subordinate lien holders are limited to recovering no more than $3,000 from sale proceeds, although those who object to the cap can engage in short sales outside the program.
Jeff Lischer, the National Association of Realtors’ managing director of regulatory policy, told the groups’ members last month at their annual conference in San Diego that the incentives should make a difference but won’t be a cure-all for foreclosures.
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