Learn about Utah, the suburbs, neighborhoods, schools and the real estate market here. This blog is authored by real estate experts from all around Utah. If you're looking to stay updated on Utah's Real Estate Market, this is the place for you.
Don’t let your home go to foreclosure. Zoom Real Estate can help you sell your home and you may be eligible to receive cash back!
Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals. In the past there was little incentive to any of the parties to successfully “short sale” a home. Now, the banks, mortgage investors, second mortgage holders, and home sellers will receive financial incentives to short sale their home and avoid foreclosure.
Under the new Home Affordable Foreclosure Alternatives (HAFA) program, borrowers will earn a $3,000 “relocation incentive” and servicers will get $1,500 for handling a short sale.
The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.
Another big change is that the process should speed up now as banks that are part of the program must approve or deny an offer in 10 DAYS!
The Federal government instituted HAFA, which is intended to streamline the short sale process, at least for transactions in which the home sellers have mortgages owned or guaranteed by Fannie Mae or Freddie Mac.
While most HAFA rules affect only the home sellers and their lender, a few of the streamlined rules impact buyers. They include:
Give me a call today to find out if you are eligible for this new government program. Call Kris with Zoom Real Estate at 801-792-5040. The call is free and there is no obligation.