Program Will Pay Homeowners to Sell at a Loss

Program Will Pay Homeowners to Sell at a Loss

The good news for investors is that home owners now have a better incentive to want to work out a short sale.

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In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.

More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.

Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.



thanks dallinn i'm going to bookmark this to view later.keep moving forward,rob


whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob

Great information dallinn,

Great information dallinn, looks like real estate market is speeding up and today is the best time to invest!!!

Time to invest

YES!!! More proof that the time is now to take advantage of more and more great deals out there.