As many of you already know, Fannie Mae and Freddie Mac have existing guidelines that require a distressed borrower to be at least 31 days late on a mortgage payment before they are eligible for a Short Sale. For many home owners, this was a major disappointment since they may have dipped into their savings accounts or borrowed money from family members to stay afloat during the short sale in order to prevent further credit damage. What seemed like a responsible thing to do was banned by Fannie Mae and Freddie Macs written rules and guidelines for servicers.
Well the masses complained, and Fannie Mae & Freddie Mac listened. Starting November 2012, Fannie Mae and Freddie Mac are changing their short sale guidelines to allow for short sales to be initiated while a homeowner remains current on their mortgage and continues to make payments.
"The new guidelines, which go into effect Nov. 1, 2012, will permit a homeowner with a Fannie Mae or Freddie Mac mortgage to sell their home in a short sale even if they are current on their mortgage if they have an eligible hardship. Servicers will be able to expedite processing a short sale for borrowers with hardships such as death of a borrower or co-borrower, divorce, disability, or relocation for a job without any additional approval from Fannie Mae or Freddie Mac."
Expect to see many improved short sale programs and guidelines from lenders over the next several months. Another victory for the distressed borrower!
Real Estate Broker
Short Sale Specialist
TOP END Properties
Phone: 203-936-7776 (Cell/Text)
We are the future of Real Estate.