Short sales are when the home owner owes more than what their home is worth in todays market. As many of you have heard, it has taken weeks and even months to get a responce from the banks on an offer. Now, the good news is, the US Treasury is calling for lenders to respond to short sale offers within 10 business days. Sellers are eligible for a $1,500 moving allowance, and will not be on the hook for repayment of any debt. These rules will not apply for Fannie Mae or Freddie Mac loans who are working to finalize guidelines of their own. A spokeswoman for the Treasury said there would be substantial penalties to lenders who do not comply. Hopefully this should help all the Sellers in the middle of this nightmare get through it in a timely manner, and the Buyers can wait less than 3 months to close.
