The Obama Administration and the Treasury Department have made some recent modifications to the Home Affordable Short Sale/DIL Program that address the specific procedure used to handle short sales.
They are requiring that lenders and servicers use uniform documentation, preapproved short sale terms and accelerated turnaround times, the plan also provides financial incentives for key players:
Homeowners who successfully complete a short sale under the program receive $1,500 to defray relocation costs. Mortgage servicers can receive $1,000 per case. Treasury will also share the cost of paying junior lien holders to release their claims, matching $1 for every $2 paid by the investors, up to a total contribution of $1,000 by Treasury.
The program will publish streamlined and standardized documentation, including a Short Sale Agreement and an Offer Acceptance Letter. These documents will outline specific marketing terms, describe the rights and responsibilities of all parties and establish clear timeframes for performance. Creating one standard set of documents that the industry can use is expected to minimize the complexity of these transactions and significantly increase use of the short sale option.
If you want to see the whole plan go to the link below to the section called "How The Home Affordable Short Sale/DIL Program Works"
The program will go until December 31, 2012. Program payments will be made upon successful completion of a short sale or DIL.
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