Members of the military who receive orders to relocate will now be able to do a short sale on their homes even if they are current on their mortgages.
Back in April we reported Fannie Mae and Freddie Mac changed their short sale qualification rules. In most cases they would not consider a homeowner for a short sale unless they are delinquent or in danger of what they call “imminent default,” i.e., death (of a borrower) divorce, or sudden disability. Orders to relocate for homeowners in the military will now be considered a qualification for short sale approval.
In a press conference last Thursday, FHFA acting director, Edward J. DeMarco, announced changes to short sale policies for military homeowners whose mortgages are owned by either Fannie Mae or Freddie Mac. In October last year, the FHFA introduced updates to servicing guidelines to include PCS orders as a hardship in order to qualify for a loan modification or forbearance.
Under the new guidelines for military homeowners, an order to transfer bases, known as a Permanent Change of Station (PCS), would now be considered a hardship that qualifies for a short-sale approval.
More on the New Short Sale Guidelines for Homeowners in the Military
Comments(1)