Note: 8/3/12: this post was written 2 years ago, short sales guidelines change regularly, the best way to keep updated on what is happening now is to give me a call so we can discuss your options. -Theresa Lussier, THE HOME GROUP REALTY, 937-478-7781
In late 2009, the U.S. Treasury Department announced new guidelines designed to help expedite the short sales process, which has been notoriously difficult.
To qualify under these new guidelines:
- The property must be the home owner’s principal residence.
- The home owner must be delinquent on the mortgage or close to defaulting.
- The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
- The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.
Borrowers who complete a short sale under the program must be “fully released” from future liability for the debt, according to the guidelines.
For most homeowners in Dayton Ohio who find themselves unable to continue to pay their mortgage, a short sale is one alternative to a traditional sale that they will want to consider, and short sales reach across all price points for real estate, so if you have an upscale or luxury home, you are hardly alone. If you have any questions about selling your Dayton home through a short sale, doesn’t it make sense to at least talk to a Realtor about your options? Call Theresa Lussier, THE HOME GROUP REALTY, 937-478-7781 to hear more about how this alternative might be able to help get you what you want in the time you want it.
If you are a buying looking for homes in Dayton OH, leaving short sales off your list can reduce the inventory available to you by about 15-25%, depending on where you are looking. It means you have to start shopping for a home earlier than buyers did 2 years ago, but in the Dayton real estate market today, don’t you think it’s worth consideration? If you’d like to hear more about how a short sale works, and the benefits to Dayton home buyers, call Teri Lussier at 937-478-7781.