Short sales may become easier to get

Updated

People have been complaining that they found a buyer for their house but it's taking months to get approval for a short sale. Well, you may find it easier to get your bank's approval thanks to a new incentive program announced Thursday by the Obama Administration.

Treasury Secretary Timothy Geithner said that the Making Home Affordable program will add an incentive for banks that agree to a short sale or deed in lieu of foreclosure. The bank will get a $1,000 incentive and upon successful completion of the process a homeowner who is losing their home will get $1,500 for relocation expenses.

In announcing the program Geithner said in a press release, "Today we are announcing a new program component to help homeowners obtain modifications in areas suffering from home price declines.If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future.These are critical steps in stemming the foreclosure crisis and stabilizing the housing market, both of which are critical to our economic recovery."

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