Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Fannie Mae & Freddie Mac Say, Short Sales to be Streamlined in June”

For the most part, I'm not in favor of all the crazy regulations that we have to deal with in the mortgage industry, that are labeled for the good of the people. All of which means you can’t think for yourself, so we’ll do the thinking for you. However, if this really works the way that it is being sold to us, count me in favor of it. Short Sales to be Streamlined in June

The sooner that we work through the foreclosure and short sale process in this country, the sooner we can stabilize values, everywhere.

We have all heard or been part of the crazy time delays, it would be great to move the process along, so that it is smoother and quicker. What do you think?

FHFA: Fannie/Freddie to Streamline Short Sales to Help Struggling Homeowners

By: The Niche Report

New Timelines Take Effect in June


The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure. The effort will come in stages with the first taking place this June. The new, aligned timelines include the requirement that mortgage servicers review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.

“FHFA and the Enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities,” said FHFA Acting Director Edward J. DeMarco. “These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”

With the alignment, servicers will be required to do the following:

·    review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package;

·    provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days;

·    make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

By the end of 2012, Fannie Mae and Freddie Mac will announce additional enhancements addressing borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.

image: nattavut/

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294


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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Phil Hickey
Right Trac Financial Group - Manchester, CT

I hope this works.  The economy is never going to achieve full recovery with the dark cloud of overlevereged homeowners hanging over the country.    

Apr 24, 2012 05:47 AM #1
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Joe it is about time, there is no reason for Short Sales to take so long, so it is about time that they streamline the process.

Apr 24, 2012 09:16 AM #2
Phil Hickey
Right Trac Financial Group - Manchester, CT

Joe, it should also be noted that the longer troubled borrowers hang in limbo waiting to find out the inevitable, either FC or Short Sale, the longer its going to take that same troubled borrower to repair their credit and turn themselves back into homeowners.  Streamlining the process is long overdue. 

Apr 24, 2012 11:14 AM #3
Tatyana Makarov
Coldwell Banker Residential Brokerage - South Windsor, CT
Your Greater Hartford Area Realtor

Hi Joe, finally something will be done! I have a short sale under deposit now and it is not fun waiting for the bank to get back to you..

I shared your article on my facebook business page. I hope you don't mind.

Have a great week.

Apr 24, 2012 09:00 PM #4
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