| Now is an excellent time to consider investing in | | | | Program. |
| residential property. Many investors and homeowners | | | | *The bank must establish upfront a value it will accept |
| want to sell property that has a mortgage exceeding | | | | for the home. |
| its market value. Such property is termed short sale | | | | *Lenders must fully release borrowers. Lenders can |
| property. Short sale transactions have been sluggish. | | | | make no claim against the borrower for any deficiency |
| But, the government now has in place an incentive | | | | in the transaction after a short sale. |
| program to accelerate the sale of homes with | | | | *The government will pay $1,500 to the banks to |
| distressed mortgages. | | | | defray their costs. |
| Problem has been slow movement on short sales | | | | *The government will provide up to up to $2000 to |
| The market for short sale property has produced low | | | | help provide up to $6000 to second mortgage holders |
| volume because both lenders and seller have been | | | | to encourage them to cooperate with the sale. |
| slow to decide about the sale of homes with | | | | *Lenders must approve or deny a purchase offer |
| depressed market values. Selling such homes has | | | | within 10 days of it being submitted. |
| been difficult because of the time and effort required | | | | *Sellers are entitled to as much as $3000 from the |
| to complete transactions. In this environment the | | | | government to cover relocation expenses. |
| patience of buyers is soon exhausted, and buyers look | | | | How you can take advantage of the program? |
| elsewhere. | | | | The new government program should place more |
| Sales of distressed property may be accelerated | | | | bargain property on the market. Prepare to take |
| The new government program, implemented on April 5, | | | | advantage of the larger volume of property that may |
| 2010, is designed to accelerate short sales by offering | | | | be on the market. Decide the features of the property |
| incentives for the seller and the lending institution and | | | | you want and what you are willing to pay. Then, |
| by structuring the sale procedure. Although the | | | | contact a real estate agency that is experienced in |
| program applies only to homeowners, the program | | | | short sale property. An agency can help you find the |
| should also aid investors in selling similar property | | | | right property. Before choosing the agency, ask about |
| because the program should move lending institutions | | | | their connections with lenders that have distressed |
| to more structured and quicker transactions. Under the | | | | property and a willingness to negotiate. Lenders have |
| new program, lenders are paid if they agree to a short | | | | been reluctant to disclose distressed property |
| sale. Here are the rules: | | | | portfolios, and this practice may continue. A good |
| *Sellers are unable to qualify for or afford a loan | | | | buyer's agent can help you access unlisted property. |
| modification under the Home Affordable Mortgage | | | | |