I was so excited when I heard the news yesterday that sellers don't have to be in default anymore to do a government short sale, I was jumping up and down. Thanks to my friend at Bank of America who sent me the press release from FHFA. My handyman was over at the house working on my garage roof, so I yammered on and on about it to him. Not that he probably cares but he has more to say to me than other occupants of the house, which would be meow, meow.
This is huge. HUGE. The FHFA had just announced that sellers who want to do a Fannie Mae short sale or Freddie Mac short sale no longer need to be in default. These sellers can be current on their mortgage payment. As long as they have a hardship, the bank will be given delegated authority to approve their short sale. The new guidelines go into effect on November 1, 2012.
As I was jumping up and down with glee over this short sale news, Ken Harney at the Washington Post called to talk about it. I bent his ear for a while, too. I imagine you'll see a piece soon by him online.
Read more about Feds to Allow Current Mortgage Payments for Short Sales.