Last February Fannie Mae announced the HomePath for short sales escalation process.1 Last month, after more than 10,000 successful resolutions, the agency announced that real estate agents are now required to register Fannie Mae owned mortgages listed for short sales.2
After experiencing a glut of stalled short sales, the agency decided to implement the pilot escalation process which has proven to reduce short sale closing times. The most common problems experienced by listing agents were valuation disputes, delays by servicers, and uncooperative subordinate lien holders. After the proven success of the HomePath’s website, Fannie Mae will require the registration of ALL short sales in efforts to provide greater transparency to all those involved in a short sale; to improve the agency’s process when working with mortgage services; to help stabilize neighborhoods by completing these sales as close as possible to fair market value; and to prevent foreclosures. As a mortgage lender, I understand why some lien holders may be reluctant to cooperate when they are informed that a borrower has chosen to short sale. Still, I believe Fannie Mae is justified in trying to prevent foreclosures; in the long run, the repercussions of towns that experience a large number of foreclosures ripple out and affect us all, neigfhborhood citizens, borrowers, lenders, the mortgage branch, loan originators; all of us really.
Now, when registering an accepted short sale offer, listing agents will be required to provide:
- property addres
- MLS listing details
- HUD-1 settlement and borrower authorization form offer details
- Loan # (the website provides a link to look up loan details: https://www.knowyouroptions.com/loanlookup)
- Sales contract borrower authorization form: ( http://homepath-activedt.netdna-ssl.com/css/cobrands/shortsale/Borrower-Authorization-Form.doc )
- subordinate lien information
The escalation tool can be used to prevent stalling of a short sale. Examples of issues that Fannie is ready to help with are:
- contest a Fannie Mae assigned value
- not hearing back from a mortgage servicer issues
- with an offer under negotiation
Have you used HomePath’s website escalation tool? If so, what was the issue you were having, and what was your experience using the tool? When selling short sales, what aspects of the process have you struggled with the most?
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