Short Sale Homes In Chandler AZ And The Standard Short Sale Program, by Christine Doty
Are you a homeowner or buyer that has been burned by a short sale? Have you waited months to find out the lender wants much more $$$ than your offer? Have you had an offer on your home where the buyer walks away after months of waiting? How about this, buyer and homeowner are undercontract and the house goes into foreclosure?
There are so many things that can go wrong with a short sale and you have to wait months to find out that it went wrong. How frustrating is that?!!!
Well hold on and dont be discouraged things are Changing. Freddie Mac's new rules may be the solution to the old Short Sale nightmare!
Short Sales can be very complex, in the past they have taken months to close. On Nov 1 Freddie Mac introduced a Standard Short Sale program to speed up the Short Sale process. Contact Christine Doty to view some of these Short Sale Homes In Chandler AZ. Many buyers have walked away from a short sale that was just taking longer then they could handle. I always tell my buyers that a short sale can take up to 6 months to find out if the bank even accepted your offer. Many of them feel that they will have no problem waiting, but buy the time the 3rd and 4th month comes around, buyers can get anxious and overwhelmed and rescind their offer.
Freddie Mac worked with the Federal Housing Finance Agency, to streamline the short sale process. Some of the changes Tracey Mooney, Freddie Mac's EVP, said in her blog The Shorter Short Sale: Long on Borrower Benefits "We estimate that the time to complete a short sale will decrease by approximately 50 percent to 75 Percent".
We understand that new delegations have been expanded to servicer's. The servicer's have the authority to approve a short sale without the review of the mortgage insurance company. Once Servicer's receive a completed application, they have 30 days to make a final decision.
If a short sale application is submitted, it must be acknowledged within 3 days of the servicer receipt of the application. Weekly updates will be provided from the servicer's, if for any reason, the short sale needs further review beyond the original 30 day period for decision they can add another 30 days making a total of 60 days. This is still much better than 3 - 6 months.. At Canyon Creek Realty, LLC, our agents are very knowledgeable with the short sale process.
There will also be more communication from the servicer's to the borrower agent and the borrower. In the past it could be very difficult and frustrating to contact a servicer. They now have an 800# that is assigned making contact with servier's much easier.
With the new program considering a short sale over foreclosure may be a good option for you. Usually a foreclosure will hurt your credit harder than a short sale. If your credit is not hurt as bad, it will be quicker to repair. If the credit is quicker to repair, that means you will be qualified to purchase again sooner as well. If you would like to know where you are at with your credit, and looking to purchase a Chandler Short Sale visit www.viewchandlerhome.com and contact us.
Past practice has been, that you must have missed mortgage payments to qualify to sell your home as a short sale. With the new rules, homeowners that are upside down with what they owe on the home and the homes worth, will be able to qualify for a short sale now. All though, it is likely that the homeowners credit will take the same hit as the short sale with missed payments.
The short sale has had an unfavorable reputation for the past few years. Buyers walking away from short sale homes in Chadler, due to lengthy negotiations, rare updates and uncertainty, have caused many buyers to not consider a short sale home. In turn, the home ends up in foreclosure. It is good news that the Standard Short Sale Program is in place. Hopefully a short sale will not be such a negative to some, due to the new changes.
Source of new rules: “The Shorter Short Sale: Long on Borrower Benefits,” Freddie Mac Executive Perspectives Blog (Jan. 22, 2013)
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