Treasury Issues Guidance On Short Sales

The Treasury Department has issued long-awaited guidance to streamline short sales.

Under "The Home Affordable Foreclosure Alternatives Program" the Treasury will be issuing checks to homeowners for $1500 and $1000 to lenders when they execute a short sale agreement.  Second lien holders will get up to $3000 to release their interest in a property. The lender must forgive the unpaid balance on the loan. 

Under the new guidelines, lenders have only 10 days to approve or disapprove the transaction.

Here is a link to the Government guidance. https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf