Short Sale Incentives Begin April 5th

A new federal program, Home Affordable Foreclosure Alternatives, aims to make the short sale process easier for buyers and sellers.  Starting April 5th the federal government will begin providing financial incentives to lenders who accept short sales.  Banks who participate in HAFA will also have to follow new rules to streamline the short sale process.

The new rules will require banks to order a Broker Price Opinion, a suggestion of what the home is worth, before a house is listed for sale.  Banks then need to inform sellers the minimum they are willing to accept from a sale.  If a buyer offers to purchase the home at or above the banks’ minimum, banks will be required to accept the offer within 10 days of submission.

As with most government programs, not all homes and sellers are eligible for the program.  It is also important to note that participation in HAFA is not mandatory.  It is unknown how effective the program will be, however, it is a step in making the short sale process easier for sellers and buyers.

~Information from the Wall Street Journal and Realtor.org~

                                        


Posted by Jennifer and Bob Snyder on 03/30/2010
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