We appreciate that the US Government now owns over 50% of our homes in the US through Freddie and Fannie and the fact that they are getting on board with their own initiatives of accelerating short sales or get fined! Any how you slice it…this is good news! Thanks INMAN!
Fannie Mae and Freddie Mac will require loan servicers who need more than 30 days to make a decision on a short-sale offer to provide weekly status updates and give a thumbs-up or thumbs-down no later than 60 days after receiving an offer.
The new short-sale timelines, announced this week by Fannie and Freddie’s regulator, the Federal Housing Finance Agency, take effect in June as the first step in a broader effort to “develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure.”
FHFA said it expects additional changes to be in place by the end of the year that address borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.
Freddie Mac issued more specifics on its new short-sale timeline, which applies not only to offers on properties in Freddie Mac’s traditional short-sale program, but to requests from borrowers to be considered for a short sale or deed-in-lieu of foreclosure under the Home Affordable Foreclosures Alternatives (HAFA) program.
Although Freddie Mac expects loan servicers to make a decision within 30 days, it recognizes that servicers may need more time to obtain a broker price opinion or approval from a private mortgage insurer before accepting a short-sale offer or approving a HAFA borrower response package (BRP).
If a loan servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response.
In reference to The article on “Fannie and Freddie Accelerating Short Sale Approvals,” please sight the date of the article and when the new short sale timeline takes place, is it June 2011 or June 2012?
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Thank you
Jacqueline
I did notice the date of June 2012 on the article announcing the new short sale timeline. Question please. If a buyer and buyer’s broker in the ss process is experiencing a tremendous amount of misleading information by the seller’s agent who is creating his own timeline so to speak, and not Chase Bank.’ The seller’s agent has pressured the buyer to order an appraisal immediately. While speaking to my Chase loan officer,she sighted that before an appraisal can be ordered, the seller’s full package must be completed and sent to Chase Bank’s Short Sale Dept to obtain a short sale approval first. After two months of submitting our short sale offer, we discovered that the seller’s package has remained on the desk of the escrow officer for 3 extra weeks due to seller not submitting, one piece of information, the account number to the 2nd lienholder. The seller’s listing agent told his client – that’s nonsense, they do not need that.” By doing so stalled the ss process by not informing his client to provide the necessary information needed. Meanwhile several weeks have been lost to a seemingly clueless Listing Agent who does not understand the ss process. Could you please clarify what goes first, the approval, the appraisal. Also, can a listing broker decline an offer verbally and sight it was Chase Bank that said so and it will not be in writing? Highly confused and sensing unrighteous actions by a seller’s agent. Jacqueline in none other Las Vegas…
Jaqueline,
Thank you for your question.
There may be more here than meets the eye. The process is simple. Seller must submit all documents to both 1st and 2nd lien holders in a short sale. This includes but is not limited to “account numbers.” The fact that the seller’s agent wants you to order an appraisal prior to sellers lender approval is very odd and contradicts our knowledge and practice over the last 5 years of successful short sales. It appears that you have been saddled with an inexperienced short sale agent or possibly a “greedy” agent looking to secure an offer so that he/she may represent both buyer and seller…attempting to collect both sides of commission. We cannot say for sure about the 2nd part of our response, however, we have experienced this pattern with similar actions from the listing agent, often too greedy to keep the best interest of the sellers in mind and too focused on income. Tripping over pennies to get to dollars.
My first inclination, move on… Nevada has more home available for sale per capita than any other state. Fall in love with another home.
Blessings, Kris & Kim