For my Ann Arbor Short Sale Sellers, Buyers and Cooperating Realtors TREASURY SETS SHORT SALE GUIDELINES The US Treasury laid out guidelines for short sales under a government program on Monday, 11/30/09. This is a critical program, as it offers lenders and sellers incentives to agree to short sales under treasury guidelines. The guidelines include
  1. Lenders/Servicers MAY NOT force or request Realtors to reduce their commissions as listed in PA (commissions are capped at 6%)
  2. Lenders/Servicers must respond to short sale requests within 10 business days.
  3. Lenders MUST release borrowers from all future debt.
  4. Short sale requests may be approved prior to property listing.
  5. Lenders must first attempt to structure a loan modification for borrower. If borrower doesn't qualify, then the process moves to short sale.
  6. Borrowers must agree to sign a deed in lieu of foreclosure if short sale does not consummate.
Borrowers will receive up to $1500 for moving expenses, lenders up to $1000 to defray losses on short sales. The new program, will take effect 4/5/2010, but lenders may use the program before then. It appears this program has the potential to revolutionize short sales. Click here to review the complete guidelines and forms. FICO REVEALS CREDIT SCORE FACTORS For the first time, this week, FICO, the company that designed the credit scoring computer models, gave some insight into how certain events affect your credit score. These "damage" factors are summarized in table below, per FICO; DAMAGE POINTS-HOW MISTAKES AFFECT YOUR SCORE (please note higher scores are harder hit by negative credit events)
MISTAKE*
IF YOUR SCORE IS 680
IF YOUR SCORE IS 780
Maxed Out Credit Card
down 10-30 points
down 25-45 points
Day Late on Major Credit
down 60-80 points
down 90-110 points
Debt Settlement
down 45-60 points
down 105-125 points
Foreclosure
down 85-105 points
down 140-160 points
Bankruptcy
down 130-150 points
down 220-240 points
*Assumes mistake is recent (within 90 days). Older mistakes affect credit less, by date.
Information from Bob Yopko FIRST EQUITY RESIDENTIAL MORTGAGE, INC. Chelsea, Michigan 800-557-0270 734-475-0270 Have questions or comments? Contact Kathy Toth Certified Distressed Property Expert today! Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

 

 

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