Positive news from multiple sources was released today about real estate short-sales. For example, RealtyTrac mentioned short sales rose 33% in January, compared with the same period 12 months earlier.
Also encouraging was word that banks are beginning to demonstrate they are more willing to approve deals, even while it means they will accept less money.
On June 1st, a new set of rules will ensue, which require lenders to make a decision about short sale requests within 60 days. The Federal Housing Finance Agency, which has oversight of Fannie Mae, Freddie Mac, also announced this week, they will require mortgage lenders to respond within 30 days, to short sale requests, and provide status updates to borrowers on a weekly basis.
For those troubled borrowers wondering whether short-sale, or foreclosure is the most damaging to their credit worthiness for the purpose of buying another home in the future, a Greater Sacramento attorney, Kristy Hernandez, has provided the following example:
Short Sale: 2 years minimum
Foreclosure: 5 – 7 years
Bankruptcy: 2 years for FHA loans; 4 years for most other lenders.
For more information about these latest developments, click on the following links to the in-depth news stories.
“Short-Sales” expected to Surge This Year”
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