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Quite possibly because HAFA and HAMP have lagged behind in expected completions, the Treasury Department recently reviewed and eliminated some of the rules to make eligibility easier.

The Treasury has also tried to address the issue of 2nd lien investors holding up the clearance of short sales. If anyone has every dealt with a 2nd lien holder, they know what I'm talking about in a short sale transaction. The Treasury department has changed how first lien investors pay out to the 2nd lien holders. Originally, the second-lien investor had to agree to accept 6% of the unpaid principle balance owed to them (up to $6,000). The new guidelines eliminate that 6% rule (but still keep the $6,000 cap). On behalf of the investors, servicers determine the percentage of the unpaid principal balance of the second lien to be paid to each holder.

All borrowers must now receive a short sale agreement within 30 days of the request. This is very exciting news, as some short sale approvals have taken me up to four to five months to get.

If you have any questions regarding your foreclosure or a possible short sale transaction, please contact me for free advice.

Steve Loraus
Realtor

ShortSalesMN.com

Twin Cities Real Estate Group, Inc
18279 Minnetonka Blvd #A
Wayzata, MN 55391-4143
Phone: 612.387.1326
Fax: 952.746.1077