Deep River
Mortgage Broker
or Lender
Daytona Beach, FL

On June 26, 2008 Fannie Mae issued Announcement 08-16 to all lenders that changes Fannie's guidelines on evaluating borrowers who have a previous Short Sale in their credit histories. It enables borrowers with a preforeclosure sale (ie short sale) to be eligible for a loan to be delivered to Fannie Mae much earlier,

Prior to the change, Fannie Mae had no specific policy on how to treat a preforeclosure sale. Absent a specific policy, underwriters were required to treat a preforeclosure sale just like a foreclosure or deed-in-lieu. Current guidelines, issued June 1, 2008, increased the time to 5 years for foreclosure on a primary residence or 7 years on a second home or investment property.

The new guideline makes borrowers eligible for a Fannie Mae loan just 2 years after completion of the short sale (assuming a foreclosue judgment has not been filed). This is important to any Realtor working with short sales

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf