New Short Sale Rules

New rules are in place for sellers in regards to short sales. A short sale is when the bank accepts less than what is owed on the property for sale. Below are the basic guidelines:

1. In order for the bank to accept a short sale Sellers must NOT qualify for a loan modification under the Home Affordable Mortgage Program or be unable to afford the modification.

2. The bank will set an acceptable value of the home upfront, based on an appraisal or broker’s price opinion.

3. Lenders must approve or deny a purchase offer within 10 days of it being submitted.

4. Once the bank approves a home for short sale, sellers may stop paying all related mortgage payments, and unpaid mortgage debt will be forgiven. These mortgage payments will not be shown as late on credit reports.

5. At closing, sellers are entitled to as much as $1,500 from the government to cover relocation expenses.

Thinking of Selling or Buying?

CALL CLARA for all your real estate needs

856-264-1058

New Law Protects Renters From Foreclosure Eviction

Under the new foreclosure prevention bill President Barack Obama signed into law on May 20, 2009, renters scored a big victory against foreclosure evictions. Starting immediately, the Helping Families Save Their Homes Act allows tenants who pay their rent on time to remain in their foreclosed rentals through the end of their lease, unless the bank sells the property to someone who intends to make it their own residence, according to the Associated Press. If the home is sold to an investor or back to the lender, the new owner will have to allow the tenants to stay in the property for the full duration of the lease.

Do you need to move because the property where you live is in foreclosure? Are you thinking of selling a rental property that no longer meets your investment needs?

Call Clara today for assistance 856-264-1058