A New Program Offered for Short Sale Incentives to Homeowners and Lenders

May 14, 2010
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Programs have been intended to stem foreclosures through encouraging loan modifications and motivate demand for housing with tax credits.

Currently, the administration is taking a slightly different tack. The New York Times reported a new program that will pay both homeowners and banks in an effort to motivate short sales.

Homeowners who are delinquent on their mortgages appear to be the program’s target. They would receive $1,500 in “relocation assistance,” most probably when their home is sold. The bank that services their mortgage would receive $1,000 for the first mortgage and another $1,000 if there is a second mortgage.

It is reported that the program will start on the 5th of April.

According to…

How To Do a Short Sale

April 27, 2010
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Are you wondering how does short sale work?

There are a lot of ways to lose a home but signing away ownership in a manner that destroys credit, humiliates the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments up to date, there are alternatives to bankruptcy or foreclosure proceedings. Short sale is one of those options.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. However, not all lenders will accept short sales or discounted payoffs, especially if it would make more financial…

Short Sales Down By 8.6%

December 24, 2008
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Short sale may be an alternative to facing foreclosure procedures but latest news show that even short sales record has gone down by 8.6% last November. The National Association of Realtors said this is a 10.6% reduction from short sales record during the same period last year. Not only are the sales records down but also the price. The median price for resale homes was pegged at $181,300 in November 2008 but it is now down to $181,300.

Real estate transactions are indeed getting a beating because even new home sales records dropped by 2.9% last month which is a decrease of 35.3% compared to the same period last year as…

Is foreclosure the only option?

December 22, 2008
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At this time when homeowners are neck-deep in mortgage one could not help but think if foreclosure is the only option. There is another option though which is becoming popular all overt the country—short sale.

Over 3,000 calls every month is being received by the National Short Sale Center from all over the country from homeowners who want to know if short sale is a better option than foreclosure.

Short sale is a win-win option because the homeowner avoids damage to his credit arising from foreclosure.  This is also favorable for banks which may end up with more losses if the home is foreclosed.