Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.
Cash for Clunks, meet Dinero for Dumps. The Obama administration has a program to help the "foreclosure crisis" by forcing banks to accept short sales and forgive the difference. Oh yeah, to sweeten the deal, the bank gets . . . $1000.
The defaulting homeowner gets $1500 in "relocation assistance."
So much for reliance on a signed contract and the remedies described therein.