Program will pay people and lenders to short sale.
More than 5 million households are behind on their mortgages.
Millions of potential foreclosures will totally ruin any hope of this economy turning around.
Treasury department wants to streamline and standardize the short sale process.
Servicing bank will receive $1000. Another $1000 to a second lienholder if applicable.
Homeowners will receive $1500 in relocation expenses.
Will be much less harmful to the credit rating of the borrower than a foreclosure would be.
Lenders will use real estate agents to determine valuation of properties, which gives them a minimum amount that they would accept to sell short.
That figure would not be shared with the owner, but if the bank gets an offer that is at least that minimum amount, they would have to accept it.
Pretty interesting stuff here, now we will just have to wait and see if the banks actually start agreeing to and using this program.
