An article today in the New York Times spells out the details on a new government initiative to help homeowners with underwater home prices and rising mortgage payments. The new program goes into affect April 1, 2010 and will force banks to allow the sale of real estate through a short sale process.
Additionally, the program allows for the distressed homeowner to recieve a generous $1500 relocation allowance once the short sale is approved. This will help the previous homeowner avoid foreclosure and save their credit rating while also giving them a leg up on finding a new place to live.
The short sale process specifically is a system in which a homeowner whos loan balance is higher than the value of their home can place their home on the market at it's current real value. When a buyer is found, the offer is presented to the current mortgage lender. Many lenders when giving the option of accepting the terms of the agreement or having the current borrower default may allow the sale to go through which in turn in many cases frees the original owner from the previous mortgage liability.
To get more information regarding the short sale process please contact Realtor® Dennis Smart at shortsales@gomaricopa.com.
To read the New York Times article, click here.
Photo courtesy of: respres
