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02-20-2011, 02:44 PM #1
Fixer Upper
- Join Date
- Oct 2009
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- 32
"selling at a loss" government program, started Q2 2010...?
I'm not sure of the actual name of this program for "selling at a loss" but I had some questions regarding the program if any of are aware of it...
http://www.nytimes.com/2010/03/08/bu...pagewanted=all
Get Paid To Sell Your Home At A Loss | Home Loan Articles
1. Has anyone heard of anyone successfully traversing the program or is it another bottomless process?
2. Does the homeowner need to be defaulted or can they just be underwater?
Any help of clarification is greatly appreciated.
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02-22-2011, 05:44 AM #2
Moderator
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- Sep 2007
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- Outer Banks
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- 1,281
Some obvious mistakes in the article are;
Article "Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed."
This is never going to happen. Nobody forces the banks to do anything.
Article "And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”"
The homeowners never were the problem with short sale.
Article "For the borrowers, there is the likelihood of suffering less damage to credit ratings."
This is the biggest short sale myth. Typically, banks won't consider a short sale until the borrower is 3 months behind on payments. 3 months of missed payments kills your credit the same as a foreclosure.
Article "Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one."
This is a joke. $1,000 is not enough incentive to get the banks cooperation.Your Outer Banks real estate agent. Learn how to buy Outer Banks foreclosures.
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