If you are a seller who lives in North San Diego County, Escondido, San Marcos, and beyond, and you need to sell your home as a "short sale" in 2010, it may be a little bit easier than you think.
Perhaps you have heard through the grape vine that short sales are nightmare transactions that take forever. Well, the Treasury Department is attempting to simplify that and help out consumers (borrowers in distress) throughout the nation.
This week the Treasury Department came out with Supplemental Directive 09-09 that addresses a new plan for lien holders to work with consumers on selling those short sales more quickly and efficiently.
This plan goes into effect on April 5, 2010 and is not meant to help every homeowner who wants to participate in a short sale. However, those who are able to participate in the plan may receive a Short Sale Agreement from their mortgage lender in late spring with details as to how the bank will accept a short sale of their property. With that Agreement, the borrower should then contact a qualified short sale listing agent in their area.
Additionally, there will be a financial incentive for those borrowers who would prefer to participate in lieu of letting their home go into foreclosure.
If you are interested in learning more about this program and how my office can help you with your short sale, feel free to contact us.
Melissa Zavala
BROKER/REALTOR® ● DRE #01324959
Southern California Short Sale Support | Short Sale Expeditor Negotiation Services
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Need to wait and see if the banks/lenders will listen. So far they did not on loan modifications, so probably won't on Short Sales either.
Melissa-I think all these programs that are trying to help the economy will continue until America is back on their feet. It seems like these programs, loan modifications, new loan programs (even though most loan programs were taken away over the past 2 years) all have their small ways of helping. I wish they helped more, or should I say it is up to the banks to actually lend is where the buck stops. We wouldn't need all these new programs if the banks would loosen credit.
Edward & Celia:Yes, we still have to wait until the end of this year to see which servicers are going to participate in the new short sale program. The success rate for loan modifications with the Obama plan is currently at 12%, which means that about 1 million people nationwide have participated and been successfully attended to by the lending institutions.
It's hard to imagine the world of short sales being done with that kind of efficiency! I will keep my fingers crossed, but I won't be holding my breath!
Melissa - well I think lots of folks will be watching closely. I am doubtful that there will be a big impact, but hopefully I'm wrong. My guess is a bunch of servicers will not be participating - what do you think?
Jeff
Hi Melissa - hope you are doing well!
I read over the plan and I wasn't happy. They give the homeowner a temporary loan modification and want the homeowner to make the payments while doirg the short sale. If the homeowner doesn't make a payment, then the short sale is cancelled in the program. Most of my clients need the down time to recoup so they can afford to move on.
have you read the details yet? What are your thoughts?
Satar & Jeff: I did read through the program. I'm not entirely optimistic (that's why I used the word 'may' in this blog post).
Satar, I didn't get quite the same read as you. I understand that if they cannot make the consecutive payments on the mod (or pre-mod), then they can move to the short sale. (I think it's on the top of page 4; I just checked.) Anyway, you can read more about how I really feel (if you like reading between the lines) on this other post which is really directed at agents. Thanks for chiming in. Hope you are well!