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.

June 24th, 2011
Admin
Posted in