New Program for Homeowners Who Sell at a Loss
The newest program by the Obama Administration will encourage homeowners who owe more than the market value on their home to short sale the property and receive moving expenses ($1500) from the Federal Government. The important news is that Lenders will be compelled to accept the short sale arrangement, forgiving the difference between the market price of the property and what they are owed.
Under the new program, a lender would use Real Estate agents to determine the value of a home and the minimum to accept. This value would not be shared with the owner, but if an offer comes in that is equal to or higher than the determined amount, the lender must take it.
The program was announced on November 30 but the details are still being fine tuned.
Information was gathered from the New York Times 3-7-10
