Obama expands Foreclosure plan now Including Short Sales

Treasury Secretary Timothy Geithner announced that the Obama administration is expanding its $75 billion Making Homes Affordable plan to include additional financial incentives to lenders willing to help homeowners unload their properties at a loss when they owe more than their homes are presently worth. Considering there is a huge chunk of homeowners who fit this description, this is a great thing, as the loan modification process continues to expand.

The plan focuses specifically on short sales and deed-in-lieu transactions as a way for homeowners to get rid of their homes due to the fact that they don’t qualify for the refinance or loan modifications part of the plan.

Lenders who have helped in renegotiated contracts have found a big problem lies in how long it takes to restructure loans. If it takes 6 months to work out a deal, the buyer may grow tired and back out of a deal if they find a better one. This tweaking should help the situation overall.