Realtors and real estate associations have been voicing their concern over the long short sale process and have been pushing for a standardized faster short sale process. One that does not take many many months or even years. Our voices have been heard and as of November 1st, 2012 new guidelines announced from the Federal Housing Finance Agency (FHFA) that will line up the same guidelines for Fannie Mae and Freddie Mac which will allow lenders and servicers to move the short sale process faster by qualifying borrowers easier and faster.
Here are some specific changes that are effective Nov. 1, 2012:
- Eliminates current Fannie Mae and Freddie Mac short sale programs and creates a single standard short sale process for both entities (Fannie and Freddie HAFA programs will expire at the end of the year).
- Enables servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales without waiting for an approval from Fannie Mae or Freddie Mac
- Offers special treatment for military personnel with Permanent Change of Station (PCS) orders.
- Standardizes and clarifies foreclosure suspensions on a property with an approved short sale.
- May pay borrowers up to $3,000 in relocation assistance.
- Fannie Mae and Freddie Mac will offer up to $6,000 to subordinate lien holders to expedite a short sale.
- Additionally, FHFA clarified that a borrower experiencing a hardship must wait at least two years before becoming eligible for a Fannie Mae or Freddie Mac loan.
These changes follow FHFA’s announcement in June that established strict timelines for servicers to respond to short sales within 30 days of receipt of a short sale offer, provide weekly status updates to the borrower, and communicate a final decision to the borrower within 60 days of receipt of the offer.
If you have more short sale questions, read our short sale section or contact us with any questions you have. We can suggest several different options to avoid foreclosure.
Contact Us:[contact-form-7 404 "Not Found"]