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Robbie L. Vaughn, Esq.'s Blog

Long Island Real Estate Broker & Attorney

By Robbie Vaughn, Esq. | Broker in Nassau, NY

New Fannie Mae and Freddie Mac Short Sale Guidelines

New Standard Short Sale Guidelines for Fannie Mae and Freddie Mac Loans

The Federal Housing Finance Agency (FHFA) announced new short sale guidelines for Fannie Mae and Freddie Mac loans. The new guidelines go into effect Nov. 1, 2012. We like most of the new guidelines. The new guidelines “will permit a homeowner with a Fannie Mae or Freddie Mac mortgage to sell their home in a short sale even if they are current on their mortgage if they have an eligible hardship.” We also like that ”Fannie Mae and Freddie Mac will offer up to $6,000 to second lien holders to expedite a short sale.”

There is at least one new guideline that may be an issue for some distressed homeowners looking to complete a short sale: “Fannie Mae and Freddie Mac will waive the right to pursue deficiency judgments in exchange for a financial contribution when a borrower has sufficient income or assets to make cash contributions or sign promissory notes: Servicers will evaluate borrowers for additional capacity to cover the shortfall between the outstanding loan balance and the property sales price as part of approving the short sale.”

At any rate, the new short sale guidelines appear to be a move in the right direction. Here are the new short sale guidelines

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