Short sales are notorious for being complex and slow, making it difficult for those most in need, including individuals facing possible foreclosure, to sell. The good news is that guidelines have been greatly simplified and streamlined over the past year – which may benefit agents as well as sellers by potentially
expediting the closing of a home and making it easier for sellers to
Most significantly, as of November 1, 2012, guidelines were
consolidated for all Fannie Mae and Freddie Mac short sale programs into one
standard, streamlined program. Lenders can now qualify someone for a short sale
more quickly and easily, and homeowners can more easily determine if they are
eligible for a short sale. Highlights include*:
These follow June guideline changes which stipulate that lenders must respond to short
sales within 30 days of receipt of the short sale offer, provide weekly updates
to the borrower, and communicate a final decision to the borrower within 60 days
of receipt of the offer.
It all adds up to more options and a smoother short sale process for homeowners who choose to take this route. Homeowners should reach out sooner rather than later to their lender if they are
considering a short sale.
For the full list of updated guidelines, read the Federal Housing Finance Agency press