Short Sale Soundoff: Freddie Mac to increase short sale incentives
Freddie Mac soon will increase incentives paid for completed short sales, according to a spokesman for the government-sponsored enterprise.
Through HAFA, the Treasury currently provides $1,500 for servicers and up to $2,000 for investors who allow up to $6,000 of the short sale proceeds be paid to subordinate-lien holders.
But servicers completed only 27,600 short sales and deeds-in-lieu of foreclosure through December. Of those, only 1,600 were for GSE-backed mortgages, according to Treasury Department data released Monday.
Private investors approved more than 18,300, and the rest were held on the servicer portfolio.
Nearly two-thirds of HAFA activity occurred in three states. Roughly 43 percent of these transactions occurred in California, followed by 15 percent in Florida and 6 percent in Arizona.
According to the Freddie spokesman, the upcoming incentive changes are being constructed with the hope of boosting short sale volumes. Whether these higher payments will go to servicers, investors, or the subordinate-lien holders is unknown.
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