Monday, April 5, 2010

New Obama Short Sales Rules Go Into Effect Today - April 5

The plan, part of the federal government's Making Home Affordable programs and acronymed HAFA (Home Affordable Foreclosure Alternatives), gives incentives to banks as well as owners to sell the house for less than the mortgage amount.  It was announced in early March, but as CNBC's Diana Olick reports, last week the incentives were increased, before the plan even began.


Melanie said...

I like this idea. Short sales offer affordable housing while allowing people to escape from a home with their credit somewhat in tact.

Montpellier said...

Sadly, I think this is a big nothingburger...the 2nd liens won't be offered enough to play along and the principal write-off(no recourse) will mean that no real incentives exist for banks to do this. There will be "short sales" but only when the banks have foreclosed, bought the note back at auction and then tired of carrying the property.

Anonymous said...

3 years of Shadow Inventory...already