Short Sales Have New Guidelines

Myrtle Beach Short Sales Upside downMillions of Americans now find themselves in a situation where they owe more on their mortgage than their homes are worth. The years of 2011-2012 have become dubbed as “the years of short sales.” In the first 6 months of 2012 alone, there were almost 39,000 short sales completed by Fannie Mae.

The Federal Housing Finance Agency has very recently announced that there will be new guidelines for mortgage lenders. All programs for short sales will be combined into one program, making it more streamlined. These new rules will let homeowners see much more easily if they qualify for a short sale, and it will allow lenders to have much more flexibility in qualifying people for a short sale.

Highlights Of The New Short Sales Guidelines

Homeowners with mortgages from Freddie Mack or Fannie Mae can do a short sale, even when they are current on their mortgage, as long as they meet the criteria for hardships such as the death of a borrower, divorce, illness or disability or employment transfer.

At closing, homeowners will have the option of making a financial contribution in exchange for not being pursued by the lender for a judgment of deficiency later.

All military personnel who must relocate are eligible for short sale, and under no obligation to financial contribution in order to cover the difference of the sale price of their house and the balance owed.

In previous times, the lenders would often try to negotiate with the homeowner for a higher payment. Under the new guidelines, any subordinate-lien payments must be limited to $6000.00.

Homeowners can receive as much as $3000.00 in relocation assistance in some special circumstances.

Guidelines For Lenders

  • According to the FHFA, lenders must:
  • Respond to the short sale offer within 30 days
  • Provide the borrower with weekly updates
  • Give the borrower a final decision within 60 days

This consolidated short sale program has created guidelines that will certainly make it easier and smoother for homeowners who have to face the possibility of short selling their home.

JP Short Sales Team
604 N. 27th Ave Myrtle Beach, SC 29577‎
843-839-9870
myrtlebeachshortsaleteam.com

Your Myrtle Beach Short Sales Team

 

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