Uniform Process for Short Sales Will Help Struggling Homeowners

For borrowers who are unable to retain their home under the Making Home Affordable Loan Modification Program, the loan servicer may consider a short sale or, if that is not successful, a deed-in-lieu

Palm Coast, Florida – May 18, 2009 – Help is on the way for many homeowners who are facing foreclosure, thanks to new details under the Making Home Affordable Program announced today by the U.S. Treasury and the U.S. Department of Housing and Urban Development.

The Making Home Affordable Program is designed to help homeowners obtain modifications to their loan so they can afford to stay in their home. Where a modification is not possible, new incentives encourage the “quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future,” according to U.S. Treasury Secretary Timothy Geithner. The National Association of Realtors® expects that a uniform process for handling short sales and financial incentives will facilitate this process. View a summary of the incentives and process (PDF)

“NAR is pleased that the government is stepping in to help prevent foreclosures by streamlining the short-sale and deeds-in-lieu process,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “NAR has been calling for uniform short sales procedures and other initiatives that will help today’s homeowners in challenging economy.”

Short sales occur when a bank agrees to let homeowners who have fallen behind on their mortgage to sell their home for less than they owe on their mortgage. Visit www.treasury.gov for detailed information on the program changes.

“Many families are finding themselves with a mortgage that is higher than their current home value, and they are struggling,” said McMillan. “As Secretary Geithner noted, and as NAR has been advocating for many months, stemming the foreclosure crisis and stabilizing the housing market are critical to our economic recovery.”

“We have heard from Realtors® that the extensive delay in the short sale process had caused many buyers to go elsewhere and have left many would-be sellers with no option but foreclosure. We are all pleased that the government has stepped in to help homeowners and those wishing to buy a home,” McMillan said.

"Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission."
3 replies
  1. John Boy
    John Boy says:

    Short Sales

    I find it almost "funny" that NAR and it’s member are now supporting the standard procedures / process of short sales. It was the same orgainzation and it’s memebrs who along with Mortgage Brokers and Appraisers created the problems to begin with. Only these three groups can totally be held responsible for over inflating the value of Real Estate. Collectively that all made tons of money at the cost of the poor suckers they convinced to pay to much for their homes. You will note that all three of these parties made their money based on a commission schedule that increased as they artifically inflated prices and told buyer that they needed to buy quick before prices went up again or before someone else beat them to their dream homes. What a nightmare this turned out to be, Only only recourse is to eliminate commission based comppensation and force brokers to pay a salary like other business do. I know I saw this coming and let my Real Estate License lasp when it became obivious that the "hose of cards" would eventually come tumbling down. I gave up my License in 1999 when the average price of a house was still three times the normal buyers income and most lenders required a substancial down payment. I think that many of the "Blood Suckers" who either remained in or became part of this industry should have gone to jail for the criminal activity that resulted from their greed. I still think we may see some real smart attorney bring a class action against some of the big Real Estate Company who either knew or should have known that the "Bubble" had to pop soon or later, yet they continued to propagate the "Investment Advanatge" of Real Estate.

  2. Nat
    Nat says:

    In response to John Boy

    You sure are lucky you let your license lapse back in 1999, because you might have been one of the bloodsucking agents that "forced" buyers to spend all their money by holdong a gun to their heads. Oh, yeah, and the sky is falling, all the world is out to get you, and aliens are invading the earth.

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply