Banks are realizing that they make out far better financially with a short sale than a foreclosure. Lenders lose 50% on a foreclosure and only 30% on a short sale. Short sales offer a way to get distressed properties off their books quickly.
On April 5th, the Home Affordable Foreclosure Alternatives (HAFA) program went in to place. With this program borrowers will earn a $3,000 "relocation incentive" and lenders/servicers will get various incentives too.
Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with a bon-a-fide offer, they have to accept within 10 days.
The boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.
Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale.
Homeowners, The Tim Sova Team, Howell Michigan real estate agents, have earned the critical designation of CDPE (Certified Distressed Property Expert) and SFR (Short Sales & Foreclosure Resource.
We have trained extensively in and understand the options, solutions and effective methods for dealing with Michigan homeowners facing hardships. More importantly we have successfully helped 23 Michigan families through the distressed property process by handling their short sales through to the closing table in the past year.
Click Here to see our thoughts on this very important topic of Short Sales
View an informational video on our site regarding the HAFA program and how it can HELP YOU!
