by Bill McBride on 9/10/2009 11:02:00 AM
Thursday, September 10, 2009
From Diana Golobay at Housing Wire: Federal Incentives Coming for Short Sales, Deeds-in-Lieu
US Treasury Department sources confirmed to HousingWire the Treasury expects to issue details on the short sale and deed-in-lieu program later this month.This program is aimed at borrowers who would be "generally eligible for a MHA modification", but are probably too far underwater ... or owe too much.
[Federal Housing Administration (FHA) commissioner David Stevens said, in prepared remarks, at a House Financial Services subcommittee hearing yesterday:] “Because we know that the MHA program will not reach every at-risk homeowner or prevent all foreclosures, on May 14th the Administration announced the Foreclosure Alternatives program that will provide incentives for, and encourage, servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a MHA modification but does not qualify or is unable to complete the process.”
He said the program will simplify the process of pursuing short sales and deeds-in-lieu, which will encourage more servicers and borrowers to participate in the program. The program will standardize the process, documentation and short performance timeframes.
“These options eliminate the need for potentially lengthy and expensive foreclosure proceedings, preserve the physical condition and value of the property by reducing the time a property is vacant, and allows the homeowners to transition with dignity to more affordable housing,” Stevens added.
Posted by Bill McBride on 9/10/2009 11:02:00 AM