New Fannie Mae Short Sale Guidelines in West Sacramento

Today let’s talk about the new Fannie Mae Short Sale Guidelines

  

  

Fannie Mae announced today that it is directing servicers to expedite short sale transactions and improve transparency on short sale reviews. The new guidelines are part of the Federal Housing Finance Agency’s Servicing Alignment Initiative to better match the servicing and loss mitigation standards of Fannie Mae and Freddie Mac.

Under the new guidelines, servicers will be required to acknowledge receipt of a short sale offer within three business days and notify the borrower within five business days if the information is incomplete. Within thirty days, the servicer must send an evaluation notice or notify the borrower that the offer is still under review. If the offer cannot be fully evaluated within 30 days, the servicer must update the borrower on the status each week thereafter. Servicers will also be required to keep Fannie Mae apprised if a short sale evaluation takes longer than 30 days.

Now don’t get evaluation confused with approval. Under the new guidelines Fannie and Freddie still have up to 60 days after a complete Borrower Response Package or BPR to respond to the borrower. Notice emphasis on complete. Experience tells us that the package can be rejected for even the tiniest of details further delaying the process and extending the time to receive approval.

Truth be told, we do not expect the impact of the new guidelines to affect our Fannie short sales in West Sacramento. Our average for approvals right now is 44 days so the new guidelines really won’t make much of a difference to us. What it does do is help those less experienced short sale agents get their deals approved.

For a complete outline of the new guidelines give us a call and we will send them to you free of charge

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did