New Short Sale Guidelines
The U.S. Treasury Department has launched a program that will provide financial incentives to mortgage servicers and borrowers who use a short sale or a deed-in-lieu to avoid foreclosure on a loan facilitated through the Home Affordable Modification Program (HAMP). HAMP aims to simplify and streamline the use of short sale and deed-in-lieu options so they are more viable alternatives for borrowers. The program:
— Uses a borrower’s financial and hardship information collected in conjunction with HAMP to determine eligibility.
— Allows borrowers to receive pre-approved short sale terms prior to the property listing.
— Requires that borrowers be fully released from any future liability for the debt.
— Provides financial incentives to borrowers, servicers and investors.
— The guidelines become effective April 5, 2010.
A complete description of the program can be found on the HAMP Web site.
If you or someone you know has questions about the short sale or foreclosure process, please contact me today!