New Guidelines Mean "The Years of The Short Sale" Will Continue

The last two years have been proclaimed "the years of the short sale." And thanks to new guidelines aimed at making the process easier, 2013 should be another banner year for short sales.

Fox Business writer Justin McHood wrote Sept. 17 that Fannie Mae had completed 38,717 short sales in the first six months of 2012, and in 2011 it completed 70,025 total.

Notable short sale guidelines that begin on Nov. 1:

1. Through Fannie and Freddy if you are current on your mortgage though qualify for a hardship (death, divorce, etc.), you can go through the short sale process and sell your home.

2. As long as the homeowners make a financial contribution toward the closing on the lenders behalf they will not pursue deficiency action through the court systems.

3. If you are a military personal and you are being relocated, you automatically qualify and are not responsible for any financial contributions in deficiency.

4. In many situations, the seller will be able to receive up to $3000 for relocation.

Lenders are also under new guidelines:

1. Must respond in 30 days of the receipt of the short sale offer sheet.

2. Has to update the borrower weekly.

3. Finals decision must be made within 60 days of the offer being received.

Remember that these are just guidelines. Whoever is handling your short sale needs to have the experience and tenacity to get the process finished for you.