New rules speed up short sales
July 1, by Jennifer Hughes, The Record - New federal regulations designed to speed up the process for many short sales went into effect last month.
Some real estate agents and experts are excited about the prospect of new deadlines for these deals that are made when a bank permits a seller to accept an offer for less than the outstanding mortgage on a property. But others are dubious about how much effect the rules will really have on a process that has a reputation as long and tortuous.
Under the new guidelines by the Federal Housing Finance Agency, if a loan is owned or backed by Fannie Mae or Freddie Mac, the servicer of the loan — often your typical bank — now has to follow a set of deadlines including:
- Acknowledge that they received the short sale offer within three business days.
- Respond to the initial request for a short sale within 30 days.
- Make a final decision on the short sale in no more than 60 days after the buyer's request is made.
Read the rest of the article here, but this is great news for distressed homeowners and all buyers!
-Daniel Barli, Esq.
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