Lenders are coming to grips with the fact that short sales will remain a part of the housing market for the next 24 to 36 months, the Wall Street Journal reports.
For lenders and mortgage brokers interested in the Home Affordable Foreclosure Alternatives program, an extension of the federal government’s Home Affordable Modification Program that goes into effect April 5, here are some highlights, according to the U.S. Treasury Department.:
- Borrowers receive pre-approved short-sale terms before listing the property, so sellers know what lenders will accept before listing the property.
- There’s a set time line, with deadlines for lenders and sellers to keep the short-sale process moving.
- At the completion of a sale, borrowers may receive up to $1,500 for relocation expenses, while servicers may receive compensation of up to $1,000. Up to $3,000 of proceeds up for grabs among subordinate lien holders, making it possible to compensate second-mortgage lenders.