Home > Blogs > California > Los Angeles County > Torrance > CALIFORNIANS CAN NOW DO A SHORT SALE & BE CURRENT ON YOUR LOANS!
3,976 views

The SouthBay Advisor

Tips, questions, answers and advice on buying and selling in CA

By Sheyenne Schultz | Agent in Torrance, CA

CALIFORNIANS CAN NOW DO A SHORT SALE & BE CURRENT ON YOUR LOANS!

GREAT NEWS FOR BORROWERS NEEDING TO DO SHORT SALES!
NOW YOU CAN DO A SHORT SALE AND BE CURRENT!

The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to align existing short sales programs into

one standard short sale program and issue clear guidelines to mortgage servicers. With these changes, Fannie Mae and

Freddie Mac will allow homeowners with eligible hardships to sell their home in a short sale even if they are current on

their loans. FHFA, Fannie Mae and Freddie Mac are making these changes to help more homeowners avoid foreclosure,

keep homes occupied and help maintain stable communities. The streamlined program rules will enable lenders and

servicers to quickly and easily qualify eligible borrowers for a short sale.

EFFECTIVE DATE

NOVEMBER 1ST, 2012...SHORT SALES CAN NOW BE DONE WITH BORROWER CURRENT! 

ELIGIBILITY REQUIREMENTS

• The existing mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.

• The person must have a demonstrated hardship which includes:

• Death of a borrower or death of the primary or secondary wage earner in the household

• Unemployment

• Divorce

• Long-term disability

• Distant employment transfer/relocation (more than 50 miles one way)

• Increased housing expenses

• Disaster (natural or man-made)

• Business failure

FEDERAL HOUSING FINANCE AGENCY

FHFA  ANNOUNCES NEW SHORT SALE GUIDELINES!
DESIGNED TO HELP BORROWERS DO SHORT SALES IN LESS TIME!

THE NEW GUIDELINES:

• Offer a streamlined short sale approach for borrowers • Offer special treatment for military personnel with

most in need. Permanent Change of Station (PCS) orders.

• Enable servicers to quickly and easily qualify certain • Consolidate existing short sales programs into a single

borrowers who are current on their mortgages for uniform program.

short sales. • Provide servicers and borrowers clarity on processing

• Fannie Mae and Freddie Mac will waive the right a short sale when a foreclosure sale is pending.

to pursue

defi ciency judgments in exchange for a • Fannie Mae and Freddie Mac will offer up to $6,000 to

financial contribution when a borrower has suffi cient second lien holders to expedite a short sale.

income or assets to make cash contributions or sign

promissory notes.

ELIGIBILITY REQUIREMENTS (CONTINUED)

• Borrowers that need to relocate more than 50 miles one way for a job, including service members with Permanent

Change of Station Orders, can be current or delinquent on their mortgage to apply for a short sale.

• Borrowers who have the capacity to contribute to shortages will be asked to make a reasonable contribution toward

the shortfall. However, service members with Permanent Change of Station Orders will not be asked for a contribution

towards the shortage for properties purchased on or before June 30, 2012.

• Borrowers will not be eligible for a new mortgage backed by Fannie Mae or Freddie Mac for at least two years after a short sale

RESOURCES FOR MILITARY HOMEOWNERS

Service members can check Fannie Mae or Freddie Mac websites to see if their loans are held by them or they can call

hotlines for military homeowners at 1-877-MIL-4566 or 1-800- FREDDIE.

FHFA announcement of 6/21/12: FHFA Announces Short Sale Assistance for Military Homeowners with Fannie Mae or Freddie Mac Loan

IS YOUR MORTGAGE OWNED OR GUARANTEED BY FANNIE MAE OR FREDDIE MAC?

Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to:

• http://www.FannieMae.com/loanlookup or calling 800-7Fannie (8 am to 8 pm ET)

• https://www.FreddieMac.com/corporate/ or 800-Freddie (8 am to 8 pm ET)

FHFA

ENCOURAGES HOMEOWNERS TO REACH OUT EARLY TO THEIR LENDER OR SERVICER IF THEY FACE ANY

HARDSHIP AFFECTING THEIR ABILITY TO PAY THEIR MORTGAGE

WHAT IS A SHORT SALE?

A Short Sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your

mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your

mortgage balance with the proceeds.
Over 400 short sales approved! Call 310-429-4170 or email usgovbank@gmail.com
Never a charge to homeowners...all fees paid by your lender.
Get up to $43,000 CASH BACK*per lender approval.

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer