It has been very difficult for Americans to keep track of all the federal bailout programs that were originally designed to halt this dying economy.

Much to the chagrin of banks, short sales are getting more and more publicity and the financial blessings of being used to avoid foreclosure altogether.

A short sale enables the homeowner to leave their home while not getting the devastating hit on their credit report compared to a foreclosure entry.

Plus, the short sale can do much for the bank by helping them save money rather than going the more expensive route of foreclosure.

Although St Louis finance experts would readily agree that banks would welcome this viable option with open arms but nothing could be further from the truth.

There are a few perceived negative factors built into current short sales. First, they generally take longer to complete; that being on average two months longer.

But the time line is not the only thing holding back banks from accepting this way of doing business. Liens from other lenders can present a serious set back.

Not surprising is the strong push by the National Association of Realtors urging the United States Treasury Department to initiate a new program that would push the use of short sales on a regular basis.

The new kid on the block came to known as HAFA or the Home Affordable Foreclosures Alternatives which went into effect April 5, 2010.

HAFA put four qualifications into place for short sales:

I. Strict deadlines for certain areas of the process

II. Financial inducements – Incentives will include $3000 assistance for moving costs for homeowners; $1500 for mortgage servicers; and up to $2000 for mortgage security investors who give up to $6000 of the selling proceeds to other lien holders

III. By allowing the current mortgage holders to get pre-approved for these short-sale terms before the actual listing of the property for sale

IV. All liabilities from said first mortgage must be released in favor of current homeowner

Banks and lenders have 10 business days to decide whether they will approve or deny this short sale application process for said consumer

At this moment, there are over 1.1 million homes that have been foreclosed upon according to housing statistics.

In fact, the numbers heading for foreclosure or the short sale process will be steadily rising.

The MBA recently said at least nine percent of current homeowners are at least 30 days late on their house payment. And with high unemployment and underwater housing equity, it doesn’t look to get any better any time soon.

A much more pessimistic picture was painted by other mortgage industry analytical companies who put this figure much closer to 5 million consumers who are delinquent or in foreclosure.

The sad thing is, HAFA will in no way be able to help such a staggering number of people who are now facing eventual foreclosure.

All St Louis home mortgage companies who participated in the federal bailout program known as the Home Affordable Modification Program or HAMP must also make this new program available to consumers too.

Author Bio: Visit this website to learn more about a St Louis mortgage. Stop by Floyd J. Tapia’s site where you can find out all about St Louis finance and what it can do for you. We invite you to call us at 877-334-0210 or 314-334-0210.

Category: Finances
Keywords: st louis mortgage, st louis finance, st louis loan, st louis refinancing, st louis home mortgage