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Just as the Home Buyer Tax Credit is about to expire (April 30, 2010) the Fed is jumping in with some new hope for the recovering real estate market.  The new Treasury Department rules are designed to help expedite Short Sales.  This relief cannot come soon enough!

In a short sale, a homeowner sells the property for its current market value, which is less than what's owed on the mortgage, and the lender agrees to accept the lower amount. The new rules that offer participating lenders cash incentives to get them to approve more short-sale deals also allow them only 10 days to approve or reject short-sale purchase offers.

To help speed up short sales, the program calls for lenders to use standardized paperwork and to establish an acceptable sale price before the home is put on the market. Sellers will be allowed at least 120 days to market the home and possibly as long as one year. During that time, the lender cannot foreclose. At closing, the government will give sellers up to $1,500 to cover relocation expenses.

So if you are thinking about buying or selling a short sale, things are about to get a whole lot easier!