HOUSTON—There’s more help on the way for homeowners facing foreclosure. The federal government is offering incentives to help speed up the process of reaching a short-sale agreement on homes in default.
A short sale is when your lender agrees to sell your property for less than you owe. In the past, a short sale could take up to six months to go through. The new government plan would, in some cases, speed it up to just 10 days and give sellers money to help them move.
Wayne Myers is one of the homeowners trying to benefit from the Home Affordable Foreclosure Alternatives program. He said he owes $70,000 more than his two-story, 3,500-square-foot home is worth. He hasn’t made a mortgage payment in 30 months.
Myers has found a buyer for the house, but he said the process has been difficult.
"It’s been frustrating, because of the things you have to go through and the people you have to deal with. They tell you one thing and then another person changes it," Myers said.
Zeus Mortgage Expert Steven Kaufman said the government has made that process easier under the HAFA program.
He said HAFA essentially moves more short sales through the system—and faster. HAFA will also provide $3,000 to sellers to help them move. That money is an incentive to keep them from walking away from homes headed for foreclosure, which is an expensive process lenders like to avoid.
"It’s one of the first programs that looks like it’s going to work. A lot of them look like band-aids. They are never really attempting to stop any bleeding," Kaufman said.
As for Myers, he said the HAFA program appears to be a perfect solution. Now, he’s left waiting for an answer from his bank.
For more information on whether you’re eligible for this program, visit makinghomeaffordable.gov.
