Homeowners across the United States who are undergoing financial hardship
could avoid foreclosure under a plan announced on Nov. 30 by the U.S.
Treasury Department. Under the plan, millions of at-risk homeowners could be
free of mortgage debt without going through foreclosure, and given $1,500 for
relocation.
The Treasury plan, which potentially applies to 75 percent of the mortgages in
the U.S., including those backed by Freddie Mac or Fannie Mae (those two
organizations are currently devising guidelines), provides incentives for lenders
and homeowners for completing Short Sales – transactions in which the lender
agrees to a sale price that's less than the borrower owes on the mortgage.
Short Sales are preferred to foreclosure because homeowners take less of a
hit on their credit and lenders realize a smaller loss.
However, Short Sales often get bogged down because of the complicated
nature of the transaction. Deals can fall through because they take too long.
The official effective date of the plan is April 5, 2010, but participating mortgage
servicers can begin operating under the terms of the program before then if
they are ready to meet all reporting requirements.
Under the plan, which speeds up and simplifies the Short Sale process,
mortgage servicers have 10 days to approve or reject a request for a Short
Sale. And when the sale is done, the borrower must be fully released from the
debt.
could avoid foreclosure under a plan announced on Nov. 30 by the U.S.
Treasury Department. Under the plan, millions of at-risk homeowners could be
free of mortgage debt without going through foreclosure, and given $1,500 for
relocation.
The Treasury plan, which potentially applies to 75 percent of the mortgages in
the U.S., including those backed by Freddie Mac or Fannie Mae (those two
organizations are currently devising guidelines), provides incentives for lenders
and homeowners for completing Short Sales – transactions in which the lender
agrees to a sale price that's less than the borrower owes on the mortgage.
Short Sales are preferred to foreclosure because homeowners take less of a
hit on their credit and lenders realize a smaller loss.
However, Short Sales often get bogged down because of the complicated
nature of the transaction. Deals can fall through because they take too long.
The official effective date of the plan is April 5, 2010, but participating mortgage
servicers can begin operating under the terms of the program before then if
they are ready to meet all reporting requirements.
Under the plan, which speeds up and simplifies the Short Sale process,
mortgage servicers have 10 days to approve or reject a request for a Short
Sale. And when the sale is done, the borrower must be fully released from the
debt.
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Read more details of the Treasury plan.
The announcement is a positive step for the real estate market and for communities across the country.
We're extremely pleased with this development. Foreclosures have played a major role in keeping housing values down. This will help the market
return to normal, stabilize prices, improve neighborhoods and prevent hundreds of thousands of homeowners from suffering the agony of being
evicted from their homes. It should also play a role in the continued recovery of the economy.
If you've fallen behind in your mortgage payments or received a pre-foreclosure letter from your lender, Vinson and McCord Realty LLC can help.
The announcement is a positive step for the real estate market and for communities across the country.
We're extremely pleased with this development. Foreclosures have played a major role in keeping housing values down. This will help the market
return to normal, stabilize prices, improve neighborhoods and prevent hundreds of thousands of homeowners from suffering the agony of being
evicted from their homes. It should also play a role in the continued recovery of the economy.
If you've fallen behind in your mortgage payments or received a pre-foreclosure letter from your lender, Vinson and McCord Realty LLC can help.
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Vinson and McCord Realty LLC helps
you aquire a home, not just a house.
you aquire a home, not just a house.
VINSON & McCORD
REALTY LLC
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