New Details of the Foreclosure Alternative Program
Posted 06/04/2009 - 19:41 by Emily Schuyler
The Obama administration recently announced new details to help Americans facing foreclosure under its Foreclosure Alternatives Program. They give borrowers who are facing foreclosure the option to pursue a short sale, which is selling their homes for less than what they owe. Another option is a deed-in-lieu of foreclosure, which is when a borrower signs their home back to the lender. The plans are to help borrowers who are eligible for a modification under the Making Home Affordable plan, but they may not qualify or are unable to complete the trial period. According to the press release from the U.S. Department of Treasury, "The new details will simplify and streamline the process of pursuing short sales and deeds-in-lieu, which will facilitate the ability of more servicers and borrowers to utilize the program. The program provides a standard process flow, minimum performance time frames and standard documentation, and it offers financial incentives to servicers and borrowers to pursue these alternatives to foreclosure."
-Emily Schuyler
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