The Obama administration has sweetened the pot for home-sellers who owe more on their mortgage that the property can sell for (article here). With the new program, taking effect April 5th, a seller who completes a short sale will receive $1,500 in 'relocation assistance' to incentivize them to get the deal done quickly and move on. The government will also give cash incentives to banks and loan servicers to encourage them to work through the backlog of underwater properties currently on the market. Short sales benefit sellers because they are less harmful to their credit score than a foreclosure. They also get the property on the market more quickly than the foreclosure process which means the home has less potential time to sit vacant and deteriorate.
If you're thinking of selling your home but worry that your mortgage may be higher than the home's value give me a call today to discuss the short sale option and how this new program could ensure that you at least get something for your home.