New guidelines for short sales

The U.S. Treasury Department announced new guidelines last week designed to make short sales go more smoothly. To qualify under these new guidelines:

• The property must be the home owner’s principal residence
• The home owner must be delinquent on their loan or close to defaulting
• The loan must have been made before Jan. 1, 2009, and be for less than $729,750
• The borrowers’ total payment must exceed 31 percent of their before-tax income.

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