by Calculated Risk on 12/01/2009 08:39:00 AM

UPDATE: Here is the document (pdf): Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure

From Reuters: Treasury sets guidance to simplify "short sales" (ht Anthony)

Here are the basics of the Home Affordable Foreclosure Alternatives Program financial incentives for completing short sales or a deed-in-lieu transaction:

Borrowers would receive $1,500 from the government in relocation expenses.

Servicers receive $1,000 from the government.

Second liens holders can receive up to $3,000 of the sales proceeds for releasing their liens.

First lien investors can receive $1,000 from the government for signing off on payments to subordinate lien holders.

Borrowers must be fully released from any further liability.