short saleAccording to a recent article on Housing Wire, the new streamlined short sale guidelines for Fannie Mae and Freddie Mac short sales (beginning November 1) are alleged to be a win-win. 

Remember that as these new short sale guidelines aim to have a more streamlined short sale when the investor owner of the loan is either Fannie Mae or Freddie Mac.

These guidelines (information courtesy of the California Association of Realtors®):

  • Eliminate current Fannie Mae and Freddie Mac short sale programs and create a single standard short sale process for both entities (Fannie and Freddie HAFA programs will expire at the end of the year).
  • Enable servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales without waiting for an approval from Fannie Mae or Freddie Mac
  • Offer special treatment for military personnel with Permanent Change of Station (PCS) orders.
  • Standardize and clarify foreclosure suspensions on a property with an approved short sale.
  • May pay borrowers up to $3,000 in relocation assistance.
  • Offer up to $6,000 to subordinate lien holders to expedite a short sale.

According to information provided directly to Housing Wire from FHFA, servicers will have the authority to approve a standard short sale for borrowers who are 31 days or more delinquent and borrowers who are less than 31 days delinquent as long as they are facing a hardship.

If a borrower is less than 31 days delinquent and facing a hardship (e.g., divorce, death, disability or military change of station orders), servicers now have the authority to approve a short sale without sending the paperwork to Fannie Mae or Freddie Mac.

Just as we have seen with previous short sale programs, these streamlined program will only be as good as the bank employees that process the short sale packages.

So, is this a trick or a treat? We will just have to wait and see.


 

 

Melissa Zavala 
BROKER/REALTOR® ● CA DRE #01324959

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Post is included in group: Short Sale Specialists & Pre-Foreclosure Education
Post is included in group: Short Sales Specialists
Post is included in group: Realtors®
Post is included in group: Short Sales and Forclosures ONLY
Post is included in group: Short Sale REALTORS®

7 Comments on Are the New Short Sale Guidelines a Trick or a Treat?

OCT
30

Will certainly be interesting to see what happens with these short sale programs and if they help or hurt the real estate industry in the long term.
5:02pm • #1
795,034 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I'd like to play some tricks on them after this last short sale that Hurricane Sandy said close before I blow you away!
6:33pm • #2
404,985 Points 15 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

Good evening Melissa. Would be nice if there was a little stabilization of rules with these two. They change so fast by the time we learn it it's too late.
6:58pm • #3
OCT
31
353,601 Points 19 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Melissa, I'm not a short sale expert but if this works like the other short-sale solutions, it's not going to work well initially. And it'll take about six months minimum to get in an acceptable fix. At least that's the way it seems to work. But maybe I'll be proved wrong.
10:16pm • #4
1,583,165 Points 429 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Melissa

It's good to know about these new guidelines and improvements but I have my doubts as to how well they will actually work. Time will tell.

Jeff

 
10:32pm • #5
NOV
01
354,306 Points 30 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Melissa,

Like it or not, short sales are here to stay for some time. I'm working on one now under the new guidelines and I hope it runs smooth.

I just had to suggest your post. So many people don't want to bother with short sales, but like it or not, somebody has to do it!  It's best we get the information.

Thanks Melissa.
4:20am • #6
NOV
06
299,750 Points

Another program more money down the drain more likey than not. Why is that everyone goes along with the government blowing money and then complain cause they spend so much,
3:45pm • #7

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