But to the rescue comes our two Govt. Sponsored Enterprises: Fannie Mae and Freddie Mac! They have just introduced policies intended to expedite the short sale process.
Now, starting June 15th, servicers are “encouraged” to follow these requirements with respect to mortgage loans sold to either Fannie or Freddie, including FHA, VA and USDA loans they may have purchased.
Knowledge is power, and by knowing the required timelines to process a short-sale approval, we are able to challenge those lenders who are dragging their feet and not getting the job done for our clients.
Here’s the short version:
- Establishes maximum required response times for pre-foreclosure sale offers submitted for consideration
- Requires servicers to provide borrowers with status updates during the evaluation process, and
- Allows servicers to respond to unsolicited pre-foreclosure sale offers without first requiring an evaluation.
And there are three types of short sales that are covered with different timelines for each.
(We fully understand the long and detailed version of the new rules…and if you have a Fannie Mae or a Freddie Mac loan…we’d be happy to discuss the full impact and details of these new rules:
In addition to the new timeline standards, there is a new requirement that the agencies (Fannie and Freddie) provide a single point of contact for the homeowner wishing to find alternatives to foreclosure.
Short sales and foreclosures are already an emotional and stressful experience for most sellers as well as buyers, and these new standards set by Fannie and Freddie for the servicers, if adhered to, will go a long way towards alleviating a lot of the uncertainty that accompanies these transactions.
But…and it is a BIG BUT; there is one thing missing from this new short-sale timeline rule—there are no penalties or repercussions if these timelines are not followed!
Thanks for reading…and give me a call if you want to see what options you may have with your upside-down home.
Steve Jackson…561.602.1258
