As part of the Making Home Affordable Program, the Obama Administration has implemented new incentives designed to help homeowners avoid foreclosure status. Short sales are actually more affordable to lenders than foreclosures, but this plan offers lenders an extra $1,000 for agreeing to accept the proceeds from a short sale as full satisfaction of the mortgage loan.

A short sale may not hurt a borrower’s credit as much as a foreclosure, so a short sale is often a better option for both the homeowner and the lender. The Making Home Affordable Program is also now offering $1,500 to homeowners who have sold their homes as a short sale to help with relocation costs.

This new government incentive program is especially helpful, because under these regulations, a lender must accept the proceeds as full payment. In some cases, a homeowner would need to make arrangements to satisfy the remainder of the mortgage after a short sale, but this program eliminates that condition.

Since current Idaho real estate conditions have left many homeowners in a situation in which they owe more on their mortgage than the current worth of their home, many homeowners will find a short sale to be the best option for getting out from under a mortgage they can’t pay while still avoiding foreclosure.

For those looking to purchase Idaho real estate, the number of short sales available is likely to be on the rise, so there’s a great possibility of getting a good deal on a home in Idaho right now. Contact an approved IHA lender to learn about the many affordable financing options that are currently available, and the best option for your individual needs.

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