Orlando Short Sale, Get $1,500 in Closing Costs
The U.S. Treasury is poised to announce a finalized plan to expand mortgage relief efforts to include short sales.
A short sale occurs when the bank allows the sale of a home for less than the existing mortgage balance.
It’s a strategy to avoid foreclosure, but banks have been more likely to let a home go into foreclosure, rather than short sell it, even if it means holding the property during moratoriums set by some jurisdictions.
That’s because short sale bids often come in well below the last appraisal, real estate agents don’t want the extra work involved and buyers fear a four-to-five month transaction period that could end in a no-deal scenario.
To help move more distressed properties through the clogged pipeline, the Treasury, under the Making Home Affordable’s Home Affordable Modification Program (HAMP) is expected to announce a $1,500 closing cost incentive for those who agree to short sales or deed-in-lieu deals (the deed is transferred to the lender, avoiding the more costly foreclosure proceeding).
The Treasury will also pay the lender $1,000 for accepting a short sale or deed-in-lieu deal.
Earlier this year when the plan was first announced, there was also a provision to pay second lien holders up to $1,000 to relinquish their claim in such transactions.
Thus far, Refinancing Fannie Mae or Freddie Mac mortgages under the Home Affordable Refinance Program (HARP) and HAMP mortgage modifications have been the “go-to” foreclosure options among federal mortgage relief programs.
Some 260,000 homeowners have refinanced under the HARP program since January, according to the Federal Housing Finance Agency.
FHFA also said during the second quarter this year there were 11,700 short sales and 202,200 trial loan modifications under government programs.
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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.
P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.
I’m interested in buying a short sale house that I have already viewed. I’m not under contract with an agent that was helping me, but he doesn’t seem to know a lot about short sales. I found the house, and I got pre-qualified, but I need someone that knows what they are doing to get through the process, and get a deal done.