Arizona Short Sale Realtor explains good news for borrowers looking to short sale, Freddie Mac or Fannie Mae backed loans
Short sales have skyrocketed in the last two years. In 2011 Fannie Mae reported 70,025 completed short sales, and in 2012 that number is already on its way to being surpassed with 38,717 short sales completed by Fannie Mae in just the first six months.
Many people falling behind on payments or that are upside down on their homes may have already consulted with an Arizona short sale realtor to see if they qualify for government short sales programs like HAMP or HAFA. For those that have been waiting, a short sale may be irresistible now.
Now, getting Arizona short sale help will be made easier with the recent guideline updates and additions made by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency announced that all short sale programs will soon be integrated into one cohesive program.
With these standardized guidelines, lenders and mortgage services will be better able to provide assistance to homeowners who are questioning their short sale eligibility.
Featured aspects of the new short sale guidelines
The following are key guidelines effective as of November 1, 2012:
• The short sale option will open up to homeowners who have an acceptable grievance or disability, such as divorce, legal separation, death, illness or long distance employment relocation, despite remaining current with mortgage payments financed by Fannie Mae or Freddy Mac.
• At a short sale closing, homeowners will be allowed to make a monetary payment in order to avoid being harassed for a deficiency judgment by the lender in the future (as long as the homeowner has adequate income).
• Relocated military employees will have access to a short sale under any circumstance, and will bear no responsibility to paying the deficit resulting from the home selling at a lower price than the unsettled loan balance.
• Lenders will not be allowed to negotiate a subordinate-lien payment higher than $6000 for the homeowner.
• Homeowners in need of fiscal relocation compensation may be able to receive up to $3000, depending on the circumstances.
New Guidelines for Lenders
According to the Federal Housing Finance Agency, lenders must do the following:
• Supply the borrower with weekly updates regarding the status of the short sale.
• Respond to short sale proposals within 30 days.
• Provide the borrower with a final judgment or compromise within 60 days of the proposal being made.
(Did I hear a slight “hooray!!” from anyone here? Maybe it was just me then…)
The challenges of short selling a home will be lessened with these new guidelines. Homeowners will have more access to Arizona short sale help and will be able to go through the short sale process with greater ease and assistance.
For full guidelines you can read Freddie Mac Guidelines.
Click on the links to see if your loan is owned by Freddie Mac or Fannie Mae.