Everyone affected by Short Sales is hoping the Obama Administration's Standardized Short Sale Plan  will smooth out the generally difficult process of a Short Sale.  A Short Sale occurs when the property owner wants to sell their home, but will not be able to sell for a high enough price to pay off the full balance of their loan or loans.  One major difficulty in dealing with Short Sales as a seller/buyer/agent is that the approval process generally does not start until there is a qualified buyer in place.  Even with a buyer in place, it can take 4+ months to receive lender approval and close.  Not many buyers are willing to stick around that long, especially when they can be bumped months into the transaction.

The new plan includes uniform documentation and financial incentives for homeowners, mortgage holders, investors and second-lien holders who participate.  Hopefully this will lead to more successful Short Sales and fewer foreclosures.

December 21, 2009