Government Is Streamlining the Short Sale Process

By
Real Estate Agent with The Bean Group

I am pleased to announce that the Federal Housing Finance Agency (FHFA) made the decision to streamline their short sale process in an effort to help more homeowners avoid foreclosure!  Starting on June 15th, real estate agents who are working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer with 30-60 days.

If the process takes more than 30 days, the lender must give the borrowers a weekly update on the status of the short sale decision.  This is a HUGE improvement and will help to keep buyers in play on short sale offers.  One of the problems has always been that the decision on a short sale offer takes and extremely long period of time–6 months to even a year.  What buyer wants to wait that long for a decision on an offer on a house?  Very few!  The shortening of this timeline for short sale decisions will help distressed homeowners and their Realtors keep the prospective buyers informed about what is happening with there offer in an effort to keep them interested in the property.  Communication is key to any good business, and I’m happy that the FHFA agrees and has made these changes!

The FHFA also announced that by the end of this year, Fannie Mae and Freddie Mac will make additional enhancements that address borrower eligibility, documentation simplification, property valuations and several other updates.  What does this mean for you?  It means that if you have a loan that is backed by Fannie Mae or Freddie Mac and you are facing foreclosure, it is in your best interest to sell your home short instead.  If you need more information on this or on how to find out if your loan is backed by Fannie Mae or Freddie Mac, please feel free to give me a call.  I would be happy to help and talk to you about your options.

Sue Melhorn is a Realtor licensed to sell real estate in New Hampshire and Maine.  Her primary service areas are Strafford and Rockingham counties in New Hampshire and York county in Maine.  Sue is also Certified Distress Property Expert.  She has both the training and expertise to help you sell or buy a home in today’s unpredictable real estate market.  Most recently, Sue has been focusing on helping homeowners sell who owe more than their homes are worth.  This type of sale is called a Short Sale.  If you have questions about how short sales work or about any aspect of the real estate market today, please visit Sue at www.canwesellshort.com or www.seacoasthomesforyou.com.

Posted by

Sue Melhorn

SeacoastHomesForYou.com                                                                                                    Re/Max Coast to Coast

A website on avoiding foreclosure:  CanWeSellShort.com

Cell: 603-944-0186                                                                                                                 Fax:  866-431-1298E-Mail: SueMelhorn@Metrocast.net  

Oh by the way...if you know of someone looking to buy or sell a home, give me a call or drop me an email.  I'm never to busy for any of your referrals!!

Comments (4)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I really have given up on the government telling us how they have fixed the housing problem.  Now have worked through today.  All have been massive failures.  All have been lip service.

May 26, 2012 02:19 AM
Sue Melhorn
The Bean Group - Dover, NH
Licensed in NH, ME and FL!

I have helped many homeowners in my market sell short Tim.  My thoughts, anything anyone can do to streamline the short sale process works for me.  Inform my clients and my community and help where I can. 

May 26, 2012 05:43 AM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

We are already receiving an answer in 30 to 45, is there something I missed or what.

May 26, 2012 08:29 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Sue, this is great news. Contrary to what Charles said, it takes months for some banks to deliver an answer. Though it won't be perfect, it is a step in the right direction if it's not just lip service, like Tim said.

Sharon

May 27, 2012 12:12 PM