I just received my CAR weekly news update plus I read an earlier email about what Obama is attempting to due for all the homeowners under water on their homes.

I say HURRAY!!  I sincerely hope that the servicing companies a homeowner calls trying to get a loan modification heeds this important news.

Homeowners---Push the envelope with your lender read this:

May 14, 2009 reprinted from C.A.R. News update: 

News Flash

has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives

Program (FAP), part of the administration's Making Homes Affordable plan.

Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to

have their loans modified on a permanent basis under the Making Home Affordable Loan Modification

Program.

! Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the

Home Affordable Modification program, but don't qualify for a modification or do not successfully

complete the three-month trial period. Before proceeding with a foreclosure, servicers must

determine if a short sale is appropriate.

! Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of

foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000

toward the cost of paying junior lien holders to release their liens (one dollar from the government

for every $2 paid by the investors to the second lien holders).

! The program will include streamlined and standardized documents, including a Short Sale

Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use

of the short sale option.

! Servicers will independently establish both property value and minimum acceptable net return, in

accordance with investor requirements. The price may be determined based on an appraisal or

one or more broker price opinions (BPOs), issued no more than 120 days before the date of the

short sale agreement.

! In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to

market and sell the property, or up to one year, depending on market conditions. Property must be

listed with a licensed real estate professional with experience in the neighborhood. No foreclosure

may take place during the marketing period (at least 90 days) specified in the Short Sale

Agreement.

! The Short Sale Agreement must specify the reasonable and customary real estate commissions

and costs that may be deducted from the sales price. The servicer must agree not to negotiate a

lower commission after an offer has been received.

! Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

! The program is in effect through 2012.

! Servicers have the option to require the borrower/homeowner to agree to deed the property to the

servicer in exchange for a release from the debt if the property does not sell within the time allowed

in the Short Sale Agreement (plus any extensions).

REMEMBER use an experienced Short Sale Realtor!!  We are having success with short sales and now is the time to put your home on the market, before the next wave of predicted foreclosures.