Thread: New Obama Program Will Pay Homeowners to Sell at a Loss

New Obama Program Will Pay Homeowners to Sell at a Loss

Monday, 08 Mar 2010 11:46 AM
By: Dan Weil

The Obama administration, which has been trying to keep defaulting owners in their homes, reportedly will start paying some of them to leave under a new program that would let owners sell for less than they owe and will give them a little cash to boot.

The new program implemented by President Barack Obama reportedly will allow homeowners to make short sales and receive a payment from the government to do so. A short sale occurs when someone sells his or her house for less than the value of the mortgage.

With five million households behind on their mortgages, the Obama administration faces loud cries for more assistance. Its $75 billion mortgage modification plan hasn’t helped many homeowners.

The new program, which takes effect April 5, makes mortgage lenders accept the short sales, which means they won’t be paid back the full amount of their loans, The New York Times reports.

To entice all parties to participate, servicing banks will receive $1,000 for the first mortgage and another $1,000 for the second if there is one. That’s the same payment as in the mortgage modification plan.

The new angle is $1,500 in “relocation assistanceâ€

I feel like a total idiot for being responsible and paying off my mortgage in full.

This guy is a total jerk. When are we going to stand up and impeach this idiot?

[b]The new angle is $1,500 in “relocation assistanceâ€

[quote="azwreath"][b]The new angle is $1,500 in “relocation assistanceâ€