Federal Incentives Coming for Short Sales

As I read and study on the subject of “Short Sales” it is my belief that short sales will be the de-facto solution for mortgage servicers to come. As I am seeing now, most people simply don’t want their homes because of their negative equity situation. Others don’t find that there is any advantage to taking a loan modification form their lender that will only put their home ownership back into jeopardy five years from now.

Since FHA ‘owns’ close to 70% of all existing mortgages in the country I would expect to see the government ‘encourage’ the servicers/ banks to outsource their short sales to them. In other words, expect that an FHA arm will be processing short sales by this time next year. Taking into consideration their potion in the mortgage arena, it only makes sense that they will want to process their own short sales. As a “Short Sale Specialist” it is my feeling that a move like this by the Government will eventfully make the process faster and smoother, that is my hope anyway.

For the latest information on the subject go to: http://www.housingwire.com/2009/09/10/federal-incentives-coming-for-short-sales-deeds-in-lieu/