Sting of Short Sale Lessened with $1,500 Incentive

Starting April 5, homeowners facing possible foreclosure can sell their property for less than they owe and receive some cash as compensation. This new incentive is part of the Federal Government's more comprehensive Making Home Affordable (MHA) Program. It addresses the short sale as a more viable option for eligible homeowners.

Eligible homeowners and their lenders can pursue a short sale and receive new incentive-based benefits. This federal program assists homeowners who cannot afford to stay in their homes by helping them to avoid foreclosure and relocate to a home they can afford.

This new push by the Obama administration to stabilize the U.S. housing market makes the process of a short sale easier for the borrower and lender. Under the new program, the lender (bank) gets $1000. Junior lien holders receive a matching $1 for every $2 paid by the investors up to a total of $1000. Another $1000 can go toward a second loan if there is one. And the government will also give $1500 in "relocation assistance" to the outgoing homeowner.

In addition to the cash-in-hand benefit, borrows suffer less damage to their credit rating. The MHA also simplifies and streamlines the short-sale process for all parties involved.

Are you eligible? There are a number of factors considered. First, it affects borrowers eligible for a MHA modification but unable to complete the modification process. For example, perhaps the borrower was unable to sustain payments under a trial period or a modification.

Other considerations include the property's condition and value, the existence of junior liens, and average marketing time in the community where the property is located. (To see a thorough explanation of eligibility, visit MakeHomeAffordable's government website.)

The MHA program offers assistance for up to 7 to 9 million homeowners by reducing mortgage payments to affordable levels and preventing avoidable foreclosures. To learn more about this comprehensive attempt to reverse the housing market crisis, visit the Housing and Urban Development's MakingHomeAffordable government website.

If you think this program is for you, let Express Homebuyers help you stay out of foreclosure. Contact us now to sell your home fast.