SHORT SALES ARE ON THE RISE!!!

Dear Friends,

At Last! There are yet more signs that the market is recovering and SHORT SALES ARE ON THE RISE!  If you are not familiar with what a short sale is, WikipediA defines it as:

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

Well they have become even more popular since the new Federal Home Affordable Foreclosure Alternatives (HAFA) program was implemented on April 5, 2010.  Under the HAFA, borrowers will earn $3,000 as a "relocation incentive." According to Glenn Kelman, the founder of Redfin stated that "banks realize now that they make out better financially with a short sale than a foreclosure. Lenders lose 50% on a foreclosure and 30% on a short sale."

The goal of this program is to accelerate the end to the foreclosure crisis by cleaning out the remaining borrowers in distress and replacing them in more stable homes.

Here is the breakdown of the program:

• Borrowers earn a $3,000 "relocation incentive"
• Servicers get $1,500 for handling a short sale
• Investors who actually own the mortgage notes get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders
• Second lien holder receive up to $6,000 for releasing their claims
• Lenders participating in the program must also determine the market values of the properties early on and inform the owners of just what price they're willing to accept.  Then, if owners come back to the lenders with valid offers, they have to be accepted within 10 days.
• Only personal residences are eligible
• The mortgage amount must be lest than $729, 750.
• The mortgage originated be fore January 1, 2009

Please click here for complete article.

Call me now to list your home, (832) 341 - 3066.

Namaste,
Myeshia "MY" Harris