Homeowners with an underwater mortgage may be able to short sell their home thanks to incentives from the Obama Administration. Short sales were not popular, and still aren’t for some lenders, but homeowners that view their home as an investment feel they will be unable to get any value out of their property in the future thanks to declining home values.
While there are some principal reduction options out there for homeowners that wish to stay in their home, there are those homeowners that simply want out since many don’t see their home gaining value in time for them to make a profit from a sale in the future.
The incentive program is set to have lenders and second lien holders work both with each other and with homeowners to reach a short sale agreement on a home and allow the underwater homeowner to get out from a bad situation without incurring many of the financial troubles that come with simply walking away.
The assistance available for homeowners with an underwater mortgage varies from lender to lender in some cases, but underwater homeowners that are looking for a short sale rather than a principal reduction may now have a better opportunity to do so because of these incentives for lenders.