Treasury Releases New Regulations on Short Sales: Lenders Must Respond to Potential Buyers Within 10 Days

January 23, 2010

Daily Real Estate Updates

sudler-sothebys-logo23 January 2010 ? U.S. Treasury to Limit Bank Response Time on Short Sale Offers to 10 Days

For any buyer trying to get a deal out of a short sale, the waiting time and frustration level must be balanced with the savings realized. Banks have been notoriously slow, sometimes taking up to six months, in responding to participants in a short sale transaction. This often results in frustrated buyers walking away from the deal. Effective April 1, new Treasury guidelines will require lenders to respond to these offers within ten days ? hopefully helping the recovery of the stalled housing market. These new regulations will not apply to Fannie Mae and Freddie Mac guaranteed loans who, at this time, are also finalizing revisions on their short-sale requirements. The new Treasury guidelines will apply to any lender participating in the Obama Administration’s Home Affordable Modification Program, which includes Bank of America and JP Morgan Chase. The new rules require that sellers receive a $1500 moving allowance and are relieved of any responsibility for the remaining debt. Lenders will receive $1000 to cover administrative expenses and an additional $1000 for allowing up to $3000 in proceeds to go to less-senior lenders. These guidelines, however, are expected to see resistance from second lien holders, who have been demanding more money from sellers in exchange for releasing their liens.

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About Stacy Braack

Stacy is a seasoned real estate professional with a broad range of hands-on experience including first time buyers, investors, luxury homes, and distressed properties. While this may appear to be a scattered set of expertise, she believes the experience provides maximum effectiveness in today’s chaotic market, which requires extensive knowledge of all aspects of the industry. Stacy’s educational background includes a BS in Industrial Engineering from Stanford University and an MBA in Marketing and Finance from the Kellogg Graduate School of Management. Professionally, Stacy has done everything from operations consulting to city government before she found her passion in real estate almost eleven years ago. It is this passion that drives the most benefit to her buyers and sellers. She is fully committed to your goals – both financial and personal. Her clients describe her as extremely direct, honest, and responsive, and they repeatedly trust her to handle one of the biggest events in their lives. For buyers she works non-stop to find you both a home you will love to live in and one that is a smart investment. Many of her 2008 buyers have realized instant equity in their new homes through ‘pit bull’ negotiation skills. While the market has been tough for sellers, her listings have sold at a rate above that of the market. Extensive, constant, and extremely high-quality marketing, including both print and internet mediums, support every listing, from investment studios to luxury penthouses. She believes that your goals are her priority and her full-time job. She has built her business on referrals from satisfied clients, and she would love to add you to that list. You can contact her at 773-405-4431 or stacy.braack@sothebysrealty.com

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