Could New Rules Speed Up Short Sales?

A recent press release from floridarealtors.org on January 12, 2010 talked about the federal government setting new guidelines for short sales of homes, giving lenders a 10 day limit to respond to offers, freeing borrowers from debt and providing financial incentives to lenders.

If this is true and actually happens it could help the 30A Real Estate market sell off the inventory of short sales and foreclosures.  If we can do that it would relieve the pressure on “regular” sellers and stabilize home prices.

According to the article, to speed up the process, the U.S. Treasury is calling for lenders to respond to short sale offers within 10 business day. Sellers are eligible for $1,500 moving allowances, and they will not be on the hook for repayment of any debt.

Lenders will also get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing up to $3,000 in short sale proceeds to be distributed to less senior lenders.

This is certainly interesting news and potentially very helpful for everyone looking to buy or sell 30A Real Estate.

If you are interested in learning more about how short sales work simply contact John Moran with Keller Williams Realty’s At The Beach Team and he will be happy to answer your questions.  John can be reached at 850-654-3325 or via email at JohnMoran@AtTheBeachTeam.com

If you are interested in 30A Short Sales or 30A Foreclosures simply click on the highlighted copy.

The 30A real estate market has changed dramatically over the last few years and has left several owners in a position of not being able to carry their properties anymore. 

Many people in this position are turning to short sales to get out from underneath the mounting financial pressure that comes from owing these properties. Simply stated a short sale is when you sell for less than what is owed on the mortgage and the bank accepts the amount.

Why would the bank do a short Sale?

Well let’s say your financial picture has changed since you bought the property and you are now facing a “financial hardship” that has put you in a position of not being able to make your payments and the possibility of foreclosure is looming. In cases where foreclosure is likely it makes sense for the bank to negotiate a short sale because it is generally costs the bank much less than if they have to take the property back, maintain it while marketing it to a new buyer – all with the possibility of getting less than what was on the table as a short sale.

What are acceptable hardships?

According to HUD – the Dept. of Housing and Urban Development – there are many valid reasons and hardships to be acceptable for default.  Here are 5 of them.

1. Death of Principal Borrower
2. Serious Illness of Principle Borrower
3. Marital Problems (Divorce, Separation)
4. Unemployment
5. Lessened Income

These are only 5 of the “Acceptable Hardships for Short Sales” and there are many others so if you are considering a short sale and would like more information about acceptable hardships or any other questions relating to short sales simply contact Keller Williams Realty’s At The Beach Team today and we will be happy to help.

Interested in buying a short sale?

To see all the 30A Short Sales currently for sale simply click on the link or you can sign up for the 30A Short Sale Alert and we will email you every time a new 30A short sale hits the market.