The federal government’s massive HAMP rescue program failed when lenders balked at any reductions in mortgage principle. Lowered interest rates and longer terms reduced monthly payments somewhat but not nearly enough, many borrowers re-defaulted.
That was then. With the home market possibly poised for another slip downward, lenders are more willing to deal. CoreLogic says short sales have tripled since 2008 with 400,000 likely to close in 2010.
A recent Washington Post story tells us it’s happening as well in the D.C. metro area, a region envied everywhere for its many thousands of well-paying government jobs. Fannie Mae says it did 36,534 short sales in this year’s first half.