Last Tuesday, the Federal Housing Finance Agency (FHFA) issued new guidelines that would speed up the short sale process. The new short sale guidelines were directed to Fannie Mae and Freddie Mac, two mortgage servicers that FHFA regulates.
Under the new FHFA guidelines, Fannie Mae and Freddie Mac are required to do the following:
• Review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package;
• Provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days; and
• Make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package
Implementation of the new FHFA short sale guidelines will start after June 15, 2012.
In a statement, FHFA Acting Director Edward J. DeMarco, says, “FHFA and the Enterprises are committed to enhancing the short sales …to prevent foreclosure, keep homes occupied and help maintain stable communities.”
The National Association of Realtors (NAR), America’s largest trade association, lauds FHFA for the new short sale guidelines.
“As the leading advocate for housing and homeownership, NAR knows that delays in approving short sale requests remain a significant challenge for Realtors and consumers and often results in canceled contracts and the property going into foreclosure,” NAR President Moe Veissi says in a statement.
While NAR lauds the latest effort of FHFA to hasten the short sale process, the group calls for a legislation that would impose mandatory short sale process deadlines on all mortgage servicers.
Whether you are a first-time home buyer, first-time home seller, empty nester, thinking about selling a home or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Group is the number one real estate team.