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Chapter News & Informations Detail

Legislatively Speaking

By: Claudette Bruck

Short Sale Guidlines

Short-Sales seem to be the norm today, and, most of us have experienced the process by now. The following reflects new guidelines that came into play on November 1st. and impacts all mortgages controlled by Fannie Mae and Freddie Mac.

Quicker approvals are expected under the new guidelines for homeowners affected by financial hardship, are relocated by the military or held back by a second mortgage on their home.

FHFA has provided more consistent guidelines to process short sales and consolidate existing short sales programs into a single uniform program.

Fannie Mae and Freddie Mac will offer up to $6000 to second lien holders to expedite short sales.

A most important feature of the new guidelines is that Fannie and Freddie will not pursue deficiency judgments in some cases. Servers will evaluate borrowers as part of the short sale approval process

Also very important…borrowers facing an approved hardship do not have to be delinquent.

The following mortgage servicers will be permitted to approve a short sale without requiring Fannie or Freddie to sign off:
CMO MORTGAGE Insurance Company
Essent Gurananty, Inc.
Radian Guaranty, Inc., Republic Mortgage Insurance Company
Mortgage Guaranty Insurance Corporation
Genworth Mortgage Insurance Corporation
PMI Mortgage Insurance Company

These guidelines are designed to streamline the process and move short sales along.

Let’s hope they do!