Hello neighbors,

Are you or someone you know going through the motions of a short sale? Well, new government rules regarding short sales may be of some much needed assistance.

The nation's Treasury Department recently announced rules that have been set forth to assist residents that are in financial peril or those who have to sell their home through a short sale.

The new government rules were implemented to assist homeowners who lack the required income or debt levels to qualify for a loan modification through the Making Home Affordable program (Obama Administration). The new plan will create timelines, a standard process, and documents. In addition, participation in the new plan will also warrant cash incentives such as $1500 for moving expenses.

One chief reason in the establishment of these new rules was to speed up the process of a short sale. In order to qualify for the new plan the property must be the primary place of residence of the homeowner, the homeowner's mortgage must be in delinquent status or likely going into default, the loan was made before January 1st of 2009 and less than 729,750, and the borrower's total monthly mortgage payment exceeds 31 percent of their income before tax.

Some down falls of the new program include but are not limited to, mortgage companies not having to launch the new program until April 5, 2010, which does nothing for people who are facing problems now.