If you're interested in buying a property sold as a short sale,
sunnier skies may be ahead. If you're new to short sales, you may not
realize that anything would be an improvement over the existing
process. As a Realtor® representing buyers in short sales, I
find one of the mot frustrating things is my dependence on the listing
agent for information on how the lender approval is
progressing. If I'm working with an agent who not only responds to my
status inquiries, but also provides updated information, my buyers are
more likely to stay with the contract. However, I've also worked with
agents who give me inaccurate information - if any information at all.
My buyers in this situation become impatient and are more likely to
withdraw their offer at some point.
Some banks/lenders are better
than others and each one has its own requirements to fulfill before
issuing written approval. Effective December 28th, the U.S. Treasury's
new guidelines will require all lenders to adhere to the same
requirements. Here are some of the highlights:
- Mortgage
servicers have 10 days to approve or disapprove a request for short
sale, and when done, the transaction must fully release the borrower
from the debt.
- Mortgage servicing companies will be prohibited
from reducing real estate commissions on the sale, a practice that has
dissuaded many agents from taking short sale listings.
- The guidance caps the aggregate proceeds to subordinate lien holders at $3000.
The largest second-lien holders are Bank of America, Wells Fargo & Co., JP Morgan Chase & Co and Citigroup, Inc.
Read the entire article:
http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales