Short sales brightening up
Today, the U.S. Treasury Department released their highly anticipated guidance on a plan for mortgage companies to expedite short sales as well as demanded mortgage servicers make loan modifications permanent rather than continue to shuffle distressed homeowners out the door.
Coldwell Banker Realtor, Maya Paveza said that the changes will “be wonderful in helping Buyers have more options, and agents to get compensated for their work. Short sales have degraded so much in the last three years, and some Lenders hold the position they would rather wait for a foreclosure and a market recovery.”
The new guidance plan comes with huge news for Realtors– mortgage servicing companies may no longer reduce real estate commissions on the sale which will likely lead to more agents jumping on to the short sale bandwagon.
The new guidelines set limits on the time it takes a bank to approve an offer which is a massive shift in the entire short sale landscape. The new rules also “caps the aggregate proceeds to subordinate lien holders at $3,000” and require the borrower be released in full from future liabilities.