Borrowers will now receive pre-approved short sale terms before listing the property. These terms will also include the minimum net proceeds that the lender will accept.
The mortgage servicer will now have just 10 days to approve or disapprove a short sale request.
The new guidelines will now prohibit loan servicers from requiring a reduction in the commission earned by real estate professionals that was agreed on in the listing agreement.
There will be a $1500 relocation assistance incentive for the homeowner.
The program requires that the borrower is fully released from future liability for the first mortgage debt.
Mortgage servicers will receive a $1,000 incentive for every completed short sale transaction.
Qualifying properties must be the homeowner’s principal residence, and the homeowner must be either already delinquent on the mortgage, or show that default is imminent.
The Home Affordable Foreclosure Alternatives Program applies to loans that are not owned or guaranteed by Fannie Mae or Freddie Mac. Fannie and Freddie Mac are working on a similar program.
Source: The Short Story on Short Sales