Short Sale Process To Improve
That is what they are saying. Again, I’m not trying to be a pessimist but I, and many others, get excited when we see this just to get let down because the banks don’t do anything. I like to prepare for the worst and hope for the best.
Anyway, the government is trying to ease the guidelines for short sales because “Short sales can result in higher prices than foreclosures and can be less damaging to local neighborhoods, in part because homes aren’t left vacant and exposed to vandalism. But these transactions are often difficult to complete.” The banks would get $1,000 for each completed short sale, 2nd lien holders $3,000, and the person doing the short sale $1,500. What? Are those dollar amounts really incentives to the banks and why should someone be paid to not pay a mortgage and settle for less? I guess someone thinks that is fair.
“Borrowers who complete a short sale under the program must be “fully released” from future liability for the debt, according to the guidelines.” Now this should be the case since this was what was said all along if you do a short sale on your primary residence whether anyone agrees with it or not. This, along with your credit score not dropping as low, was the whole reason for doing a short sale versus letting it go into foreclosure.