Contact: Loriann Harrison
September 14, 2012
New Guidelines Make Short Sales Easier
Fannie Mae and Freddie Mac announced that starting November 1, completing a short sale will be faster and easier for distressed homeowners.
“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said FHFA Acting Director Edward J. DeMarco in a statement. “The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.”
FHFA’s Servicing Alignment Initiative will reduce the amount of documentation that is required to get short sale approval, in turn expediting the entire process. In addition, borrowers with sufficient income and assets will be allowed to sign promissory notes or make cash contributions, instead of having deficiency judgments filed against them.
In general, the new guidelines will:
· Allow servicers to approve a short sale for borrowers who face certain hardships – including the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer – even if the borrower is not in default.
· Give servicers the authority to approve and complete compliant short sales without requiring prior approval from a government-sponsored enterprise.
· Allow automatic short sale eligibility to military service members who must relocate, even if they are not in default.
· Military service members who are approved for a short sale will not be required to pay contributions towards the remaining deficiency.
“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, SVP, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. It is vital that servicers, junior lien holders and mortgage insurers step up to the plate with us.”
For many underwater homeowners, a short sale is the best foreclosure alternative. If you are struggling to pay your mortgage, contact Loriann Harrison and receive your free report: Loan Modification Secrets.
As a Certified Distressed Property Expert® (CDPE), Loriann has a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. CDPEs can provide solutions, specifically short sales, for homeowners facing market hardships. CDPE’s:
- Have a proven step-by-step system in place for listing and closing short sales
- Close 8 out of 10 short sales they list… 50% faster than other agents.
- Have the world’s leading team of short sale specialists available to assist them with questions, plus ongoing training and online forums to keep their skills razor-sharp.
When it's time to sell, we will take the time to learn about the features and details of your home and highlight its uniqueness thru customized marketing to attract the Right Buyers. We focus on targeted buyer demographics, schedule showings, negotiate the purchase contract, vet buyer’s financial profile, oversee the inspections, appraisals, all necessary paperwork and supervise the entire escrow process thru closing.
Loriann M. Harrison is also a Certified Luxury Home Marketing Specialist (CLHMS), a member of the Institute for Luxury Home Marketing, a real estate trainer and a resident of SW Broward County Florida. She has been practicing real estate since 1998, first in Long Island, NY, and now in Florida since 2004. Loriann and her husband have been successful real estate investors since 1995 and manage a multi-million dollar portfolio.
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