In this new law it looks like Obama is trying to get the banks to move on short sales quicker and forgive the Home Owners of any outstanding Mortgage balances according to Yahoo. Does anyone know if this applies to both Primary and Investment properties?

Thanks to all.

Ed

Ed,

I responded to your other question too and did a little more research to find out more.  Here's a link to the guidelines.  https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

On the 3rd page it mentions that the property must be the borrower's principal residence.  Sorry to stink up your Monday.

As the new guide lines are not published yet - everything is only a guess ... as there's not much information out to us yet regarding what has been changed - addressed.  The driving force for this seems to be the fact that so many people have applied for and have been denied loan modifications - we will know more when the new guidelines are updated.

Here's the link to an article just published - now about the new law and regulaitons

http://www.nytimes.com/2010/03/08/business/08short.html?src=sch&pagewanted=all

The link I gave above is for direct guidelines from the HAFA program under the Making Home Affordable umbrella set to begin on April 5. 

Does a primary residence work for a vacation home as long as you are there 30% of the year? Or if it hasnt been used as a rental?

Thank you

Allison,

A vacation home is not considered a principal residence no matter the amount of time spent there or whether or not it's been rented out in the past.  Your property taxes will be Homestead according to what you claim, you can only claim 100% Homestead exemption on your primary.  So there will be a record of how you classified your different properties. 

The new law applies to primary residential properties. However, if you own a duplex or fourplex, and live in one of the units, you may qualify.  Good luck: )

Kamal Randhawa, Broker

510-932-1066