At the end of November, the United States Treasury Department released new rules attempting to encourage banks to speed up short sales. The rules create a uniform process and documents that all banks must use as well as provide cash incentives to banks willing to participate. The new rules are starting to work…I actually had a previously unapproved short sale close faster and with less problems than a regular sale that went under contract at around the same time.
This is great news for buyers and sellers as it will help us move through the inventory levels that much faster. In order to qualify, a seller must:
- use the home as his/her primary residence
- have taken the loan out prior to January 1, 2009
- must be delinquent on mortgage or likely to default on it
- have a loan that is less than $729,750
- have a monthly mortgage payment that is more than 31% of before-tax income