Banks no longer want to foreclose…they WANT you to do a short sale!

This just in from Fannie Mae and Freddie Mac: Homeowners could soon have an easier time selling their homes for less than what they owe on their mortgages, under new guidelines from a federal housing regulator and mortgage-finance giants Fannie Mae and Freddie Mac…The new guidelines Streamline Short Sale Processes to Prevent Foreclosures and Help Communities Stabilize

Fannie/Freddie just announced that that they will implement new short sale guidelines for servicers to follow as part of the Federal Housing Finance Agency’s Servicing Alignment Initiative. The new guidelines streamline documentation requirements, waive deficiencies for borrowers that successfully complete a short sale, set standard payments for subordinate lien holders, include extending help to people who have financial difficulties but haven't missed mortgage payments. In addition, all servicers will have the authority to approve and complete short sales that conform to the requirements without receiving individual approval from Fannie Mae.

“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, senior vice president, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible.

The changes only affect underwater mortgages guaranteed by Fannie and Freddie, which back the bulk of U.S. home loans. The FHFA has the authority, as regulator for Fannie and Freddie, to force changes on the lending industry.

The housing regulator didn't estimate how many people would now qualify for short sales, but about 4.6 million borrowers with loans backed by Fannie or Freddie are underwater, with 80% of those homeowners having missed no mortgage payments.

The rules go into effect Nov. 1 and also allow homeowners with missed mortgage payments and serious financial problems to submit fewer documents to be approved for a short sale. Homeowners will receive speedier approval if they are experiencing a financial hardship such as a lost job, divorce, death in the family or job relocation.

Earlier this year, the housing regulator set out formal timelines for short sales, saying that mortgage lenders would have to respond to a short-sale offer within 30 days of receiving it.

Short sales have been growing as a percentage of home sales. They made up 8.8% of home sales in May, up from 7.6% a year earlier and 6.5% in 2010, according to CoreLogic.

 

Banks WANT you to do a short sale…In addition to the streamlining of the process, many times you, the owner, will receive a cash “relocation assistance” payment at closing!

Use the calculator at www.DoesItPayToStay.com to see how long it will take before your home value is equal to your mortgage balance.

Call me to discuss your options and the process.

Thanks…Steve Jackson

561.602.1258