â€œI spoke with Josh @ Fannie Mae. He said that once there is a foreclosure sale, per an agreement with the lender, Fannie Mae would pay the lender the full balance of the note.
I started to comment that what incentive is there for the lender to process a short sale. He said I know where youâ€™re going with that and we couldnâ€™t comment.
It appears that the title would be transferred to Fannie Mae and the lender would be reimbursed for the FULL balance of the note. This is crazy! When Fannie Mae is the investor, it seems a JOKE to bother with the short sale!!
My Comments: Fannie Mae short sales are the best and easiest short sales to get approved.Â This is because Fannie is one of the most reasonable loan owners out there.
The problem is that no one at the lenders really cares. The reason the lender is getting paid off completely is because they already sold the loan to Fannie.
Remember, Fannie was created to free up lenderâ€™s money. That way lenders could go make more loans. The problem is that Fannie has entrusted their investment to these lenders. Let me explain.