Federal Short Sale Guidance - Released

Short sale procedures for loan servicers are standardized in guidelines released earlier this week under the federal government's Making Home Affordable loan modification initiative for troubled home owners. The guidelines create a path for short-sale or deed-in-lieu of foreclosure for eligible borrows for whom loan modification isn't a viable option.

The guidelines provide $1,500 in federal funds to help borrows relocate, $1,000 to help servicers offset their processing costs, and up to $1,000 to investors secure release of subordinate liens. For each $3 an investor pays to secure the release of a lien, the investor receives $1 in assistance. The guidelines prohibit a reduction in agreed-upon commissions (if they're not more than 6%) and take effect April 5, 2010, but can be implemented by servicers at any time. Fannie Mae and Freddie Mac are expected to follow this release with their own rules based on these guidelines.

Do you have questions about selling or purchasing a short sale property? The Grove Team can help! With extensive experience both on the listing and purchases of short sale properties, our team can guide you step by step through the process.

Call us with any of your real estate needs...we are here for you! Specializing in Northeast Tarrant County.

The Grove Team
Keller Williams Realty

Direct (817) 337-0000
info@groveteam.com

www.groveteam.com

Blog source - dfwRealtors.com / MetroTex Association of Realtors