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I heard this news today from Susan Boulding via Twitter.com ... so first off I want to thank her for the great information!

Today there were expanded benefits announced for the Making Homes Affordable Program!

Here is an excert from the posted announcement: 

"Today we are providing a program update, including additional details on Foreclosure Alternatives and Home Price Decline Protection Incentives. Foreclosure Alternatives will help to prevent costly foreclosures by providing incentives for servicers and borrowers to pursue short sales and deeds-in-lieu of foreclosure in cases where a borrower is eligible for a MHA modification but unable to complete the modification process. By increasing MHA modifications and the use of alternatives to foreclosure, we will reduce the negative impact of foreclosure, minimizing damaging costs for financial institutions, borrowers and communities."

FINALLY!  Banks may get the message!

In the past, banks were leery to approve short sales and many agents in the Sacramento area gave up trying to process them for their clients because the success rate was horrible! 

In the last several months bank's have seemed to get with the program and are approving short sale offers more quickly and more often.. which is a good thing for our Sacramento real estate market!

Now Obama's team has added more incentives not only for the banks but for the home owners involved.

Step 1 of the program requires the bank and the borrower to "sit down" and try to resolve the matter by doing a loan modification.  This makes perfect sense to me! 

Step 2 gives the bank and the borrower an incentive to move forward with a short sale if the issue can not be resolved by a loan modification or if a previous loan modification was unsuccessful.

• Banks will get up to $1,000 for successful completion of a short sale or DIL (deed-in-lieu of foreclosure).
• Borrowers/owners may receive incentive compensation of up to $1,500 to assist with relocation expenses.

This seems to me to be a common sense approach to the matter and I wish that it was available to all of the Sacramento residents who have already had their foreclosure processed!

I for one am going to hope this helps encourage bank's...  but keep in mind it not mandated so the bank's need to choose if they want to participate with the program!

 Do you live in the Sacramento area and need a referral to an agent who specializes in short sales?  Give us a call and we will give you a referral to someone who can help!

Here is a link to the annoucement >>

**** PLEASE NOTE: This program is NOT exclusive to Sacramento and Elk Grove residents who need to do a short sale! *****

This blog by:

Team Newington
Sacramento Mortgage Planners
First Priority Financial
(916) 687-6868

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