Homeowners left hanging while their banks consider whether to approve the short sales of their property may benefit from new federal guidelines that give lenders a 10-day limit in which to respond to purchase offers.
In a short sale, the homeowner sells the property for less than what is owed on the mortgage, and the lender forgives the difference. Many of the single-family mortgage holders in Florida owe more than their homes are currently worth.
While short sales are considered an ideal solution for banks and for homeowners on the verge of foreclosure, the deals often drag on as lenders take weeks or months to decide how best to proceed. Frustrated buyers sometimes walk away during the delays. And, in some cases, lenders insist that the borrowers share in the financial loss, which holds up the transactions even longer. As a result, homes stay on the market, prolonging the housing downturn.
The Treasury rules, in addition to imposing a 10-day deadline for bank decisions, call for sellers to receive $1,500 moving allowances—and for the sellers to not have to repay any of the debt. Also, lenders will get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing as much as $3,000 of a short sale’s proceeds to be distributed to less senior lenders.
KALIS & KLEIMAN is recognized and experienced foreclosure prevention attorneys. Neal Kalis and M. Scott Kleiman pride themselves on not just being lawyers, but being lawyers and trusted counselors. The firm’s personal attention to its clients’ needs and desired results produces a customized approach that this firm delivers to each case. Neal and Scott are both AV-rated, which indicates that an attorney has reached “the height of professional excellence” and is recognized for the “highest skill and integrity.” They have more than 50 years of combined experience, and they have participated in thousands of transactions, settlements and trials. KALIS & KLEIMAN will help you through the entire process in order to help you reach an outcome that is the most beneficial to your financial future. KALIS & KLEIMAN has earned a reputation of legal excellence and a history of successfully managing Foreclosure Defense cases.