New Short Sale Directives May Speed the process
Short Sale approval times may be changing in June according to directives by the Federal Housing Finance Agency. This agency is the regulator for Fannie Mae and Freddie Mac, two of the nations largest lenders.
They are striving to enhance procedures for expediting short sales, deeds-for lease and deeds-in-lieu of foreclosure.
The agency is also trying assert additional changes that will focus on borrower eligibility for the process as well as simplifying documentation and keeping an eye on fraud mitigation.
The nations biggest lenders are requiring servicer s to try and get time-frames to 30 days but will require a solution in 60 days. For those of us that have experienced 6 month waiting periods this would be a relief.
I am skeptical. Both lenders have been under the microscope for years and have not really improved the process. Open communication with agents in the field trying to solve short sale issues for clients remain a tremendous roadblock.
If you are facing a difficult housing situation, don’t panic, things move slowly. You should take the time to educate yourself on the process. Talk openly with your lender and understand your options. Contact an attorney who specializes in this area of the law. Patience is key and as slow as the industry moves, time is on your side. Read my blog post regarding short sales and attorneys.
To Short Sell or Deed-In Lieu
If you have tried selling, tried negotiating, tried to restructure your loan and have had no luck, it may be time to offer the lender a deed-in-lieu of foreclosure. Basically you are nicely saying, “here, take the house, here are the keys, I want out”. Closure is important in this tragic process of loosing a home. Many people I have talked to are so fatigued by the process of trying to get a short sale approved, they just want to throw up their hands and walk out. Maybe thats ok, but there is a process in place to attempt that type of walk away. It’s a legal process where you the seller sign the deed to your home over to the bank without the bank having to go through the foreclosure process. With the proper legal counsel you may find that is the right course of action for you.
If I can help you in anyway, I will be glad to discuss your situation by phone or in person. Feel free to call.