For those you are still in the dark about short sales, it is the process of selling a home that is worth less than the value of the mortgage.  

On May 14th, Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan announced the expansion of the $50 billion Making Home Affordable program.  This new monetary incentive gives servicers and borrowers an alternative to foreclosure such as short sales.  Another initiative would be where services can modify the loans in markets that have seen a sharp decline in price.

Efforts to implement the programs are just getting off the ground.  Government officials said Thursday that mortgage-servicing companies have offered more than 55,000 trail modifications to financially troubles borrowers and that thousands of those borrowers have begun making loan payments under the program.

Short Sales have accounted for 15% to 20% of existing homes this year and that is true for the Charlotte area as well. 

This program sounds good to those who find themselves facing foreclosure but are trying not to damage their credit score too much.  It also helps banks who don't particularly want to take over a home, maintain its condition while trying to sell it in a challenging market place. 

At this point, 14 mortgage servicing companies have agreed to participate in the loan-modification program and 75% of loans are now covered by the plan.  Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Company and Wells Fargo & Co. are participating but Sun Trust Corp., PNC Corp. and American Homes Mortgage Servicing Inc. are still evaluation the program. 

With the housing market still not making a rebound, we may see additional incentives to come.