No More Long Waits On Short Sales?

The Federal Housing Finance Agency (FHFA) has announced new guidelines for short sales.  Beginning June 15^th, real estate agents working to get short sales for homeowners with Fannie Mae or Freddie Mac backed mortgages can expect to receive a decision within 30 to 60 days.

One of the biggest challenges facing real estate professionals and homeowners is the lengthy amount of time it takes to have a short sale approved.  The long short sale process could be responsible for some of the delays in getting the housing industry back on track, since so many homeowners are now using short sales to avoid foreclosure. The FHFA is hoping that the new guidelines for short sales will make the process easier.

Borrowers Impacted

Any homeowner trying to short sale their property after June 15, 2012 can expect a shorter wait time if their mortgage is backed by Fannie Mae or Freddie Mac. While the new timelines don’t impact non-governmental mortgage companies some non-GSEs might feel pressured to quicken their short sale process of the single family homes for sale market.

Guideline Details

• Servicers must make a decision on the short sale within 30 days of receiving an offer.
• If the servicer needs more time they can get up to 30 additional days; but must provide the borrower with weekly updates on the process.
• The borrower must respond to any counteroffer within five business days.  And the servicers must then respond to the borrower within 10 business days.