Can Short Sales Really be Shortened

Another attempt is being made by the U.S. Treasury to prevent more foreclosures by trying to speed up the short sale process.

Short sales are when a bank agrees to let a homeowner sell a house for less that is owed. Short sales could cut lenders’ losses and will not damage a person’s credit as much as a foreclosure. According to the National Association of Realtors, there have been about half a million short sales, or 10 percent of total sales.

The program is scheduled to begin on April 5, 2010.

New guidelines require lenders to decide within 10 days if they will accept a short sale request. Currently, the biggest problem with short sales is that it has been six months or more for the lender to approve an offer.

One of the key elements of the new short-sale guidelines is that lenders have to approve the minimum asking price before the house goes on the market.

Troubled homeowners can attempt to get help through the Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP).

Here’s a quick look at the requirements for a homeowner to qualify for the short-sale program:

  • The loan was made before Jan. 1, 2009 and is less than $729,750.
  • The homeowner is delinquent on the loan or is likely to default.
  • The homeowner’s monthly mortgage payment exceeds 31 percent of his or her gross monthly income.

If you are struggling to pay their mortgage and are facing a future of uncertainty, a short sale of your home may be the best answer to your dilemma. A short sale is a good way to save your credit and give you the opportunity to continue on with your life without going through the heartache of a possible foreclosure of your home. Please contact Eddie Perez, Broker-REALTOR, CDPE. As a CDPE, I can help you through any housing related crisis. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at eddie@InvestHoboken.com or 201-344-2886.

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