Why has the U.S. Treasury issued new Short Sale guidelines?
Why has the U.S. Treasury issued new Short Sale guidelines?
The Fredericksburg real estate market is impacted strongly by short sales, and thus we will be impacted by the new short sale guidlines. Here is some information about the new short sale guidelines.
Because of the challenges many homeowners have faced in their attempts at Short Sales, RE/MAX International has worked closely with major lenders, the U.S. Treasury and other federal agencies to streamline and standardize the process. The new guidelines are in response to this advocacy by RE/MAX and others in the industry. Short Sales are seen as a critical component in stemming the increasing number of foreclosures and stabilizing the housing market. The streamlined processes are potentially available to more than 75 percent of the mortgages in the United States.
What’s been improved in the Short Sale process?
Under the Treasury’s Foreclosure Alternatives Program, mortgage servicers have 10 business days to respond to a Short Sale offer. In the past, a lack of timely response has been one of the main reasons for delayed or derailed Short Sales. Also, paperwork and documentation are now standardized. Previously, procedures varied widely between lenders. Various deadlines in the Short Sale process also have been standardized.
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