Brokers Forum

New short sale rules are effective April 5, 2010. Loan servicers MUST evaluate a borrower for a loan modification before consenting to a short sale. To qualify for a short sale the property must be the borrowers residence, the loan must have been originated on or before January 1, 2009, the mortgage is delinquent or default is foreseeable, the unpaid loan balance is less than $729,750 and the monthly payment exceeds 31% of the borrowers gross income.

The loan servicer may send the borrower a Short Sale Agreement (SSA) to begin the process, or to determine list price. The SSA will identify the minimum bid acceptable to the lender, requires the property to be listed with a licensed real estate broker, requires the transaction to be "arms length" and the buyer may not resale the property within 90 days of closing. After signing the SSA, the servicer may not increase the minimum net amount acceptable.

Within three business days following the receipt of an executed purchase agreement, the borrower or broker must deliver a completed Request of a Short Sale (RASS). Within ten days of receipt of the RASS, the servicer must indicate its approval or disapproval of the proposed sale.

Many are optimistic that these and similar guidelines will eliminate much of the uncertainty and duration of short sale transactions.

Darryl,
You can read the HAFA Supplemental Directive 09-09 and see the SSA and RASS forms at http://foreclosure-aid.com/HAFA_Guidelines.pdf.

Patrick

Myrna,

Just want to follow up and make sure you received the Dates and Deadlines Guide to the CBS from our Spotlight.
Go to www.armbrust-rei.com and click the Spotlight logo on the left margin, 1/2 way down the page. You will asked to
submit your name and email and will receive a link back to access all the good stuff posted there.

Jim, No unfortunately. We were hoping to revive this national program but found sponsorship/admin to be prohibitive.

Jim, we are sure trying. They are tenacious.