The Federal Housing Finance Agency (FHFA) is directing Fannie Mae and Freddie Mac to streamline their short sale processes and timelines in order to help more homeowners avoid foreclosure.
Online PR News – 09-June-2012 – Fairfield, CA – The Federal Housing Finance Agency (FHFA) is directing Fannie Mae and Freddie Mac to streamline their short sale processes and timelines in order to help more homeowners avoid foreclosure.
Ty Leon Guerrero, broker/owner of Team1Realty in Fairfield, CA believes the new rules will significantly improve and speed up the short sale process.
“FHFA and the Enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities,” said FHFA Acting Director Edward J. DeMarco. “These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”
The effort will come in stages with the first taking place this June. Starting June, mortgage servicers must review and respond to requests for short sales within 30 days.
According to the FHFA new release dated 17th April 2012 - servicers will be required to do the following:
o review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package;
o provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days;
o make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.
A short sale may be a good option for distressed property owners. A short sale is the sale of a home in which the amount owed to the lender(s) is more than the amount that the home can be sold for. Instead of the home owner having to bring in money to complete the sale, the sale is completed through negotiations with the existing lender(s) and the lender(s) agree to accept less than the full amount owed to satisfy the debt and allow it to be paid off “short.”
Team1realty.com is your Home and Land Specialist. Ty Leon-Guerrero is the Broker/Owner of Team1Realty. We are Certified Distressed Property Experts that will help you negotiate with your Lender. Our role as real estate agents is to guide you through the buying or selling process, taking the time to make sure you understand every step of the transaction. We are absolutely committed to fulfilling your needs with the highest level of professionalism, expertise, and service.