The number of properties listed under short sale is on the rise and it has become really hard for house owners to match the current eligibility criterion for short sale. But, here is good news for all the house owners looking for short sale to help their mortgage situation. The Federal Housing Finance Agency is working closely with Fannie Mae and Freddie Mac for the further expansion of eligibility criterion for short sale process.
FHFA is working with the aim of streamlining the overall short sale process for house owners undergoing critical financial crisis. Further, the lenders will be given the authority of qualifying homeowners who are current on their payments but are still facing financial hardships due to different reasons. According to FHFA guidelines, they are trying hard to consolidate the overall short sale process into a single program.
It is expected to see a rise in overall short sale approvals in near future which will help in reducing the financial losses faced by owner, lender, and other associated parties. Moreover, this process is targeted to help house owners in finding a suitable option against foreclosure. With the past study of market and community, foreclosures always leave an adverse impact on the complete family and this law is to save these families from a foreclosure by providing better chances of short sale approval.
Another important benefit of this change is that it will help in reducing the number of house owners defaulting on their mortgage loan because of financial hardships. Even the lenders are asked to help under water families in getting approval for short sale. It seems that these changes will be of great help for families looking to avoid foreclosure of their house. These changes will be effective by the end of the year.
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