The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to streamline the short sale process in order to help more homeowners avoid foreclosure.
This news came out last week. The first stage of the new process will begin in June. The new timelines include the requirement that mortgage servicer's review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.
New guidelines will require 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 this year, Fannie Mae and Freddie Mac will announce additional enhancements addressing issues such as borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.
Along with Bank of America's new short sale timeline improvements, this is a great step forward in helping out both "underwater" homeowners and home buyers.
If you need to sell your home or are interested in buying a short sale give me a call at 360-739-6981
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