This is a sort of continuation of the article I shared with you last week indicating good news about short sales for real estate investors. The government has reached a $25 billion settlement with the five biggest mortgagers over robo-signing practices. This move is expected to increase the amount of completed short sales.
With this new settlement, “loan servicers will receive credit when they approve sales that include forgiveness of a portion of underwater homeowners’ debt.” While not a huge portion of homeowners will be helped directly, it does remove some of the daunting barriers that have kept homes in the foreclosure pipeline for long periods of time. Of the total $25 billion, $5 billion will go to paying fines, $17 billion is ear-marked for homeowner relief and $3 billion will help underwater borrowers refinance.
To read the complete article, click here.