Good News for Short Sales? Extra Extra Read All About It!

Short sales and good news?  Is this an oxymoron…? 

There will soon be increased incentives paid for completed short sales, according to a spokesman for Freddie Mac.

So here are the stats: short sales skyrocketed dramatically since about 2006. Both Fannie Mae and Freddie Mac completed 112,935 of these transactions in the first three quarters of 2011, up from 107,953 in 2010 which is about double the numbers in 2008 and 2009 combined, according to their data.

Many agree more can done but a number of stakeholders, banks, and investors stand in the way. The government’s Home Affordable Foreclosure Alternative has struggled since it launched in April 2010.

Through HAFA, the Treasury provides $1,500 for servicers and up to $2,000 for investors who allow up to $6,000 of the short sale proceeds be paid to the banks.

Nearly two-thirds of HAFA activity occurred in three states. Roughly 43% of these transactions occurred in California, followed by 15% in Florida and 6% in Arizona.

Fannie Mae received clearance from the largest mortgage insurers to speed up short sales.

According to the Freddie spokesman, the upcoming incentive changes are being constructed with the hope of boosting short sale volumes. Whether these higher payments will go to servicers, investors or the bank is unknown

What’s the good news?

The good news is that there someday there will be a quicker short sale process so that the real estate market can correct itself quicker.

If you need more info on selling short, buying short sales, or what in the world a short sale is, email us and we’ll be happy to supply all the info you could ever need!  [email protected]