New Short Sale Reforms @ Fannie and FreddieGeneral Real EstateUpdated on Sep 9, 2012 View more like this | Visit BRANDYWINE, MD | Contact Terita M. Savoy, Realtor |
In what could be a game changing modification, beginning November 1, 2012, homeowners who are current on their loans (not just seriously delinquent) may qualify for short sales. Loans must have been purchased or guaranteed by Fannie Mae or Freddie Mac, and homeowners must fit hardship criteria. Said criteria include unemployment, divorce, long-term disability, a change in job location, which is greater than 50 miles from the current home, a business failure, death of the primary or secondary wage earner, or natural or manmade disasters. Of particular interest is a major change that concerns members of the armed forces, who receive change of status orders, and are underwater. Even if current on their loan payments, service members, who receive change of status orders, and are underwater, are automatically eligible for short sales.
The short sale process has the frustrating reputation of being drawn out and contentious. Short sales have had high failure and cancellation rates. Rules that became effective in June of 2012, require servicers to operate within a faster timeline. A borrower is due a response to a request for a short sale within 30 days of receipt of an offer from a purchaser. A final decision must be given within 60 days of receipt of a completed short sale package. Under the new rules, second lien holders will be entitled to a maximum of $6,000 from the proceeds of a short sale.
To find out whether or not a particular loan is owned by Fannie or Freddie, a homeowner may visit either www.fanniemae.com/loanlookup or www.freddiemac.com/corporate.
Use of the free Fannie Mae Lookup tool enables a borrower to determine whether or not Fannie Mae owns his or her loan. The borrower must provide a street address and ZIP code to begin searching. A search that results in a found match does not guarantee that you will qualify for a Making Home Affordable refinance or loan modification. You must contact your mortgage lender to verify results. Should you wish further information, contact Terita M. Savoy at [email protected].
Sources: K.R. Harney, New rules for short sales will apply to many underwater borrowers. The Washington Post, September 1, 2012, at E1; information at the referenced Fannie Mae and Freddie Mac websites.
Terita Maria Savoy is a Realtor® with Exit Bennett Realty, a first class REO/Short Sale listing brokerage. She is a foreclosure and luxury home specialist, who is licensed in the District of Columbia and the State of Maryland. She can be reached at [email protected]
The short sale process has the frustrating reputation of being drawn out and contentious. Short sales have had high failure and cancellation rates. Rules that became effective in June of 2012, require servicers to operate within a faster timeline. A borrower is due a response to a request for a short sale within 30 days of receipt of an offer from a purchaser. A final decision must be given within 60 days of receipt of a completed short sale package. Under the new rules, second lien holders will be entitled to a maximum of $6,000 from the proceeds of a short sale.
To find out whether or not a particular loan is owned by Fannie or Freddie, a homeowner may visit either www.fanniemae.com/loanlookup or www.freddiemac.com/corporate.
Use of the free Fannie Mae Lookup tool enables a borrower to determine whether or not Fannie Mae owns his or her loan. The borrower must provide a street address and ZIP code to begin searching. A search that results in a found match does not guarantee that you will qualify for a Making Home Affordable refinance or loan modification. You must contact your mortgage lender to verify results. Should you wish further information, contact Terita M. Savoy at [email protected].
Sources: K.R. Harney, New rules for short sales will apply to many underwater borrowers. The Washington Post, September 1, 2012, at E1; information at the referenced Fannie Mae and Freddie Mac websites.
Terita Maria Savoy is a Realtor® with Exit Bennett Realty, a first class REO/Short Sale listing brokerage. She is a foreclosure and luxury home specialist, who is licensed in the District of Columbia and the State of Maryland. She can be reached at [email protected]
