Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

March 9th, 2010

New Federal Program That Pays Homeowners To Short-Sell

Categories: Buyers, Carlsbad, Sellers

Carlsbad, CA - In an interesting turn of events, the federal government is instituting a program designed to encourage short sales.  In this program, expected to start in April,  the government  will provide $1,000 to the first lender, $1,000 to the second lender, and $1,500 in relocation assistance to the homeowner to encourage a short sale. 

Is it enough to really encourage the banks to be more cooperative in a short sale environment?  Probably not.  Will it encourage more homeowners to attempt to short sell their house versus a foreclosure – maybe. 

In a Carlsbad short sale, the homeowner normally can not afford to keep making the payments.  Maybe they have contacted the lender and asked for a modification and the lender couldn’t help them.   So, rather than walking away from the property and letting it go to foreclosure, they attempt to sell the property for less than is owed on it.  They normally live in the property (payment free) until the sale is completed.

This is beneficial to the lenders because vacant foreclosures are often ransacked – by angry property owners, or vandals, bringing down the price of the home even further.  It is beneficial to the homeowner because it reports more positively on their credit report. 

For More Information on Carlsbad Short Sales vs. Carlsbad Foreclosures…

Tags: Carlsbad Foreclosures, Carlsbad Short Sales

Posted by Mike and Amy Mewborn//