More Good News for Short Sale Sellers in 2012
2012 may be indeed THE year to do your short sale: still taking advantage of the Mortgage Forgiveness Debt Relief Act, looking forward to an even more streamlined process....
If you are considering selling your home as a short sale, 2012 may be the year for you. First off, the Mortgage Forgiveness Debt Relief Act of 2007, which protects certain short sale sellers from tax liability, is set to expire at the end of the year. The Treasury has amended the HAFA guidelines for those short sale sellers interested in participating in the government’s HAFA short sale program. Bank of America also alleges that they are now moving along swimmingly. And, just this past week, the Federal Housing Finance Agency announced that both Fannie Mae and Freddie Mac will adopt new policies to streamline short sales starting in June.
Beginning in June, mortgage servicers must review and respond to requests for short sales within 30 days, according to the announcement. Servicers will also be required to provide weekly status updates if the short sale is under review for more than 30 days, and servicers will need to make their final decisions within 60 days of receiving an offer.
According to FHFA Acting Director Edward J. DeMarco, “These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”
Short sales are a great option for many folks who are having trouble making ends meet and want to avoid foreclosure. Currently, many short sales can be completed in less than two months when all parties (sellers, buyers, agents, and the short sale lender) work together and have good communication. This new announcement aims to clarify expectations for those lenders processing short sales.
Want to learn more about short sales? The agents at Broadpoint Properties have closed over 1000 short sales and know how to get the job done. Feel free to contact our office for more information about options available to avoid foreclosure.
(Source: Market Watch)
Melissa Zavala
BROKER/REALTOR® ● DRE #01324959Search San Diego County Homes For Sale | Search Riverside County Homes For Sale
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