Industry News

Stepping up short-sale efforts

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Real estate franchise giant RE/MAX International this week promoted new short-sale incentives as an alternative to foreclosure during a broadcast to affiliates across the country. The presentation, which featured Laurie Maggiano, director of policy for the U.S. Treasury Department's Office of Homeowner Preservation, among other speakers, coincided with the April 5 launch of the revisions to the federal Home Affordable Foreclosure Alternatives (HAFA) program, which is a part of the Home Affordable Modification Program (HAMP). The new incentives provide that servicers can be paid $1,500 to cover administrative and processing costs related to a short sale or deed in lieu of foreclosure, investors can be paid up to $2,000 for allowing a portion of short-sale proceeds to go toward subordinate lien holders. And up to 6 percent (to a $6,000 maximum) of the unpaid principal balance of each subordinate loan can be deducted from the sale proceeds in order to pay off subordinate lien ...