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These new rules will help those that are striving and fighting for homeowners everywhere. Short sales are very time consuming and require much more dedication and work from the agent. Many homeowners who where being forced out of there homes from bad loans or lay offs now have a escape route where they may even receive assistance in moving to a new home.
If a real estate agent does not yet know how to manage the intricacies of the short sale, it's time they learned. These tricky transactions are going to be a major part of our industry for a while yet. In the metro Atlanta market, short sales easily comprise 25-30% of all current listings.
As we short sale specialists continue to anticipate the institution of the new Home Affordable Foreclosure Alternatives(HAFA) program's short sale guidelines, I am encouraged on five important points:
(1) No more commission cuts! Participating lenders will no longer be permitted subsidize their own contractors by grabbing a portion of the agents' commissions. The "new rules" prohibit loan servicers from demanding that real estate brokerages reduce the commission stated in the listing agreement as a condition of approving a short sale -- a practice that's been a sore point with many real estate agents.
(2) Troubled borrowers who agree to a short sale or deed-in-lieu of foreclosure will receive up to $1,500 to assist with their relocation expenses. I've actually seen this provision in practice in recent months for sellers who had FHA-backed mortgages. Now, these new guidelines extend the practice to include conventional mortgages.
(3) Loan servicers and investors who sign off on payments to subordinate lien holders will earn incentives up to $1,000 for successfully completing a short sale or deed-in-lieu. I'm not sure that this is much more incentive than the servicers are already getting, but I hope it is going to be on TOP of what they are already getting. That would make it attractive.
What do you think? Has anyone out there in the Rain-Making community had an update or further insight on this point?
Now, these last two points are the BEST of all in my opinion:
(4) No more having to submit an offer and pray for a counter in order to know what the lender will consider an acceptable net. Now, troubled borrowers interested in exploring a short sale will receive preapproved short-sale terms prior to the property listing.
And...
(5) Servicers must agree to fully release them from future liabilityif the sale goes through. To date, all of my lenders have agreed to fully release the lien, but I've heard the stories of those who would not. This provision takes that worry out of the game.
Now, how many of the lenders will play by the new rules? That remains to be seen.
Elva Branson-Lee -- Short Sale Specialist, Certified Distressed Property Expert (CDPE)
Soild Source Realty GA 770-475-1130 ext. 8988
http://AvoidGeorgiaForeclosure.com
http://BestAtlantaShortSales.com
http://AtlantaGoldRealEstate.com
Serving the South & East Metro Atlanta cities.
I sell real estate, property, houses and homes in:
Ellenwood, East Atlanta, Ormewood Park, Decatur, Stone Mountain, Conley, Rex, McDonough, Hampton, Jonesboro, Morrow, Locust Grove, Lake City, Forest Park and Stockbridge.
