The Obama Administration is desperate to help homeowners with a new program after getting somewhat lackluster results from the mortgage industry overhaul and the loan modification programs that are already out there. Because it is clear that more needed to be done, there is a program in place now that will pay homeowners to sell for less than what they actually owe while giving them a little cash on top of that. This program is ready to begin on April 5th through a short sale process. The problem is- will the mortgage and banking industries be willing to forgive the difference between what is owed and what the house will sell for through a short sale?
To help that this program is very beneficial to the homeowners that find themselves facing foreclosure. With this program the bank that holds the mortgage will get $1,000. Another $1,000 can go towards a second mortgage if the house has one against it. The government will also be giving the homeowners in this situation $1,500 in what they are calling relocation assistance. Another upside to this program is that they will get an assurance from the lender that they won't later be taken to court for the unpaid mortgage balance.
For a long time short sales have been thought of as lengthy and complicated. Many lenders tend to shy away from them. Will this stream lined process now be the one to help our struggling real estate market and discouraged homeowners?
To help that this program is very beneficial to the homeowners that find themselves facing foreclosure. With this program the bank that holds the mortgage will get $1,000. Another $1,000 can go towards a second mortgage if the house has one against it. The government will also be giving the homeowners in this situation $1,500 in what they are calling relocation assistance. Another upside to this program is that they will get an assurance from the lender that they won't later be taken to court for the unpaid mortgage balance.
For a long time short sales have been thought of as lengthy and complicated. Many lenders tend to shy away from them. Will this stream lined process now be the one to help our struggling real estate market and discouraged homeowners?
