Here are some helpful tips that may help those involved in Short Sales.  These key point have been provided by Ron Hoy from Coldwell Banker Select Real Estate as a simplification of the rules from the Treasury.  Hopefully these can answer some short sale questions for you.

As of now, these seem to be the key points:

• Mortgage servicer’s have 10 days to accept or deny a short sale request. After a sale is completed, the borrower could be completely released from debt.
• Borrowers are eligible to receive a $1,500 moving allowance, if they sell their home through a short sale.
• Mortgage servicers will receive $1,000 for each completed short sale.
• Investors who hold first mortgages can get as much as $1,000 for allowing second lien holders to release their liens.
• Second lien holders can get only as much as $3,000 in proceeds from short sale to release their liens.
• The property must be the homeowner’s principal residence.
• The homeowner is delinquent on the mortgage or default looks likely.
• The loan was made before Jan. 1 this year and is less than $729,750
• The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.

Please let me know if you have any questions or concerns, (775) 750-5256 or ronbellrealtor@hotmail.com

Filed under: LOAN INFORMATION, SHORT SALES