March 1, 2010 NEW website....if you think you've been scammed by a loan modification company go to this web site:  www.preventloanscams.org November 30, 2009 According to Reuters the U.S. Treasury set guidance on a plan for mortgage companies to speed short sales of homes and other loan modification alternatives. Financial incentives for completing short sales include a $1,000 payment to servicers and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders.  Borrowers would receive $1,500 in relocation expenses. Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt. It also prohibits mortgage servicing companies from reducing real estate commissions on the sale. Subordinate lien holders are capped at $3,000. November 24. 2009 A short sale is the sale of real property where the lender who holds the mortgage agrees to accept less money than what the owner owes the lender. There is generally no cost to a seller but the seller is not allowed to receive any proceeds from the sale.  The seller could have tax liabilities so please check with your tax expert.  A seller could also be asked to hold a note for a portion of the unpaid balance.  Certainly, it's up to the seller whether they choose to do this. A short sale can take months to complete depending on the lender involved.  Some estimates are from 3-6 months.  Patience is the key. John and I hire a short sale company on the sellers behalf to process the short sale with the lender.  Processing the short sale can take as much as 25 hours of hands on work!