I believe you are talking about a "Short Sale", a preforclosure sale where the lender agrees to take less than the mortgage amount to satisfy the note. While it seems like a sensible thing to do to save the lender the money they would spend on the foreclosure proceedings and get the property off their books, it doesn't work out that way.

I have an offer on a short sale, all cash, close in 2 weeks and the lender, Country Wide, hasn't even assigned a case number to the property yet. We've had the offer in for two months now.

Such purchases are done with conventional lending at this time. There is talk about the feds providing funds to local governments to purchase foreclosures but that hasn't happened yet. Work with a Realtor who is versed in short sales. aloha

Wed Apr 30 2008, 10:49

The govt was talking about a bailout. Thats old news. There is nothing going. Although, I highly doubt they will provide "govt credit" . Instead, you should look into getting an FHA loan, they raised th limits.

Fri Apr 11 2008, 19:39

No their is not, at least not yet. When the U.S. Senate bill gets passed, in the form that they intend it , it will likely provide a tax credit. However, that remains to be seen

Wed Apr 9 2008, 17:22

God I hope not. My taxes fund enough BS already without helping out some idiot who couldn't figure out how much home they could afford.

Wed Apr 9 2008, 15:29