Federal Administration forces banks to accept short sales |
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A new program from the Obama administration hopes to take a plunger to theshort-sale process by essentially forcing banks to accept less than theborrowed amount for a property. It will also pay those delinquent homeowners$1500 to help with relocation. The idea is that a short sale isbetter for everyone -- banks, underwater owners, and communities. Banks willtake a hit, but less of one than if the home went into foreclosure. Homeownerswill take a credit hit, but, again, less than with a foreclosure. Andcommunities would avoid having empty, foreclosed homes sitting around. This is economics on a grand scale,so -- despite what various talking heads say -- it's really impossible to knowif and how well this will work. But the Administration hopes it will be anotherfoot helping to kick-start the economy. | |
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