New Federal Short Sale Program Starts April 5

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New Federal Short Sale Program Starts April 5

March 8, 2010 by J. Philip Faranda

The NY Times is reporting on a new Obama initiative to create a financial incentive for banks and home sellers alike to do short sales. A few highlights from the article:

Program starts April 5, 2010

Lenders will be “compelled” to accept short sales. We’ll see about that.

The administration wants to streamline the process. We’ll see about that too.

Financial incentives are $1,500 to the home seller, $1,000 to the lender, and $1,000 to a subordinate lender.

Agents will be used to valuate the properties, but lenders will not be forced to accept offers beneath the agent valuation.

Continued at Westchester Real Estate Blog.

Posted in Short Sales | Tagged Federal short sale program, New York short sale Realtor, New York short sales, Westchester short sale Realtor, Westchester short sales | 1 Comment

One Response

on May 22, 2010 at 5:19 pm lorena

hi Philip
Thank you for such a wonderful source of info. Could you let me know if there has been a change in short sales time approval by banks? I was told by a real estate agent that, by law and starting on april 5 2010, banks must approve (or reject) an offer by 60 days of the offer being placed. On the NY Times I read last month that it was 30 days.
what do you know about it? and, if at all possible, could you send me a link to the official site where the info is available?
I’m trying to walk away from a deal. I’m hoping timing is on my side… thank you in advance. Lorena
PS just in case the info is relevant. the property is in Suffolk county (long island, state of NY)

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