Fannie Mae and Freddie Mac will require mortgage servicers to make decisions on short sales under new short sale timelines beginning this June. This is great news for buyers and sellers! Bank of America also announced this week that they will be streamlining their short sale process using the equator system.
According to the Housingwire, servicers must review and respond to a borrower within 30 days of receiving all documentation. According to guidance released Tuesday, the servicer can take up to 60 days on a decision if negotiations with mortgage insurers or other stakeholders linger. (more…)
Bank of America will be offering some of their borrowers principal reductions on their mortgages in amounts that may in some cases exceed $100,000!
Bank of America and 4 other larger servicers have made an agreement with state and federal regulators the the principal reductions are the result. Bank of America is the largest of the 5 servicers and will be paying out the most in the settlement, part of the reason for this is that they acquired Countrywide back in 2008 and have to pay for them as well. These principal reductions with effect about 200,000 borrowers most of which originated their loans from 2005-2007. For more on this settlement, click here.