Standardized Short Sale Process will Benefit Bullhead City & Fort Mohave Home Sales
A couple of years ago the National Association of Realtors formed a task force to address the concerning issue of the short sale process. Upon completion of its studies the task force issued recommendations to banks and lenders that the process be standardized across the board; with common forms used, fixed time frames be adopted for the various phases of the short sale process.
Finally on November 30, 2009 the U.S. Treasury Department announced Home Affordable Foreclosure Alternatives (HAFA) a program that features; that’s right; standardized procedures, common forms, and fixed time frames.
A borrowers/sellers approval is expressed in a standardized Short Sale Agreement (SSA). The SSA must be good for atleast 120 days inwhich no foreclosure may take place. Within 3 business days of an executed purchase agreement the borrower/seller is to submit a Request for Approval of Short Sale (RASS) which is a standard form. Within 10 business days of receipt of a completed RASS the Lender/Servicer must either approve or disapprove the purchase agreement. The approval can not require a closing date less than 45 days and again no foreclosure may take place during this time. The most common hang-up that can prevent a successful sale of a short sale home is a junior lien holder. The HAFA has finacial incentives in place to assist these junior lien holders to accept the release of the lien for less than is originally owed to the lien holder.
As we have seen in the past couple of months in the Bullhead City Fort Mohave home sales market is that short sale homes are getting purchase agreements accepted quicker, total time closing durations shortened and a lot less fear of a short sale for every party involved.
If you are considering purchasing a short sale home or foreclosure home and have some questions; feel free to send me a message or give me a call.
If you’re a home owner that’s considering selling and think a short sale may be for you but have questions; feel free to send me a message or give me a call.
