Homeowners with underwater properties have many reasons to celebrate the introduction of the new guidelines from the two government-sponsored enterprises (GSEs) – Fannie Mae and Freddie Mac. On November 1, 2012 the Federal Housing Finance Agency (FHFA) – the regulator for these two GSEs – will begin new guidelines that are expected to make short sale simpler and easier.
It’s about time. .
As you know, Fannie Mae and Freddie Mac hold or guaranteed almost half the mortgages in the USA. They were a huge reason why short sales were taking so long.
This new guidelines are directed to the "servicers" of their loans, enabling them to approve short sales quicker and more effectively.
(ie: a servicer could be Bank of America that manages your mortgage for either Fannie or Freddie as the investor or guarantor of your loan)
The best news for underwater homeowners is that as part of the new set of rules, property owners with mortgages from either of these two GSEs will be able to short sale their homes despite making timely payments of interest and principal if they have an eligible hardship
The "servicers" will be able to allow short sales without a glitch and any additional permission from Freddie and Fannie.
It doesn’t stop there, the new guidelines are without reservations one of the most effective ways that was needed bring short sales to its true origin and meaning. .SHORT!
1. Foreclosure initiation and suspension requirements when the Servicer is evaluating a Borrower Response Package
with or without a purchase offer.
2. Authorize payment of up to an aggregate $6,000 to subordinate lien holders in exchange for a lien release and extinguishment of the indebtedness secured by the Mortgaged Premises
3. 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
4. Enable servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales
5. Servicers must respond to short sales within 30 days of receipt of the short sale offer.
6. Servicers must provide weekly updates to the borrower.
7. Servicers must communicate a final decision to the borrower within 60 days of receipt of the offer.
8. Borrower(s) will be able to buy another property in two short years!
9. If a cash contribution is required based in a formula that essentially states that the borrower(s) will be asked for an amount if it is determined that savings amounts more than 6 months of mortgage payment amounts. Any promissory notes will be assessed at 0% SEE ENTIRE EXPLANATION HERE
A specific form has to be filled in by the borrower to request for consideration. . SEE IT HERE (Ask your Realtor for assistance and collaboration when submitting this form)
If you are in a situation where you owe more on your mortgage than your home is currently worth, chances are you have at least thought about short selling your house, this should be considered as a major factor in your decision.
Breaking the chains relates to the many homeowners that are essentially prisoners of their own homes when their mortgages are underwater.
If the value of your home is below to what you owe . . .
Many mortgage owners are having problems validating a short sale as opposed to waiting years for their properties to get back to even value- market value and loan amount.
These new short sales guidelines can easily tilt many of them in going forward.
We recently completed a short sale where the borrower was
forgiven over $200,000 from a possible deficiency judgment, they rented a better home with a two year lease and with a little preparation, they can purchase a new home in two years. Read about this completed short sale here plus testimonial here
Over $200,000 forgiven by the lender. .just how many hours would my client had to work to pay just that?
In two short years, they will be back to normal again!
Breaking the chains means also acknowledging the self-imposed moral constraint towards doing something beneficial for you and your family vs. to what people may or . .may not say about you.
The ABC’s to help you make a short sale decisions as follows is a compilation based on my interviews with over 500 families contemplating the very same thing.
It is my sincere belief that homeowners need to find an advocate to represent them.
Someone to seek the guidance, counsel, and services to make the right decisions based on facts and not emotions.
An advocate that is educated, a licensed distressed property expert, a real estate broker that has the experience, the knowledge and the savvy to simply get you OFF the hook! Someone that will act totally in your best interests to help you find the best solution to the financial crisis you are facing now.
I believe I am that advocate for you for many reasons. .
With my experience and as a broker certified by different organizations to do short sales, I have developed a system that helps homeowners dealing with distressed properties. My team of Realtors, one assistant, an attorney and several supporting staff has developed long lasting relationships with these lenders that allow you to take advantage to short sale your property quickly and remove instantly bad mortgage debt. The strength of our experience and knowledge is invaluable to anyone seeking for a solution.
Short sales Maryland Expert
Short Sales Virginia Expert