It looks like soon the Federal Treasury will be paying banks $1K and sellers $1.5K . They are also looking for incentives o secondary holders. This sounds like great news for moving Short Sales forward.
Under the Treasury plan, which is expected to be announced this month, servicers would get a $1,000 “success fee” when a short sale is completed, according to short sale experts who have been briefed on the policy. The home seller would receive up to $1,500 to assist with relocation expenses, similar to the “cash for keys” programs that various servicers offer.
Treasury officials are working with an advisory committee to determine how to accommodate the holders of second liens, which have been a big hurdle to completing short sales. Much of the debate around short sales is centered on whether the holders of second liens will receive a fixed amount or a percentage of the short sale price.