There is some important short sales news to mention! Starting June 15th, Freddie Mac and Fannie Mae will be required by the government to provide short sale buyers with a final decision on their offer within 60 days. Also, sellers requesting a short sale must receive a response within 30 days. Currently, short sales can take anywhere from a few weeks to a year to have a decision! These rules will only apply to Fannie and Freddie loans but it is a step in the right direction. Many buyers are reluctant to make an offer on a short sale because of the time it can take to have a decision reached, this may help sellers get more offers if they have a mortgage that qualifies.
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…)
The government released the news of the national mortgage settlement late last week. The question is: is this going to really help anyone? The settlement sounds wonderful with the big numbers but when you think of all the people it has to cover, the numbers get small fast. Those whose homes were foreclosed on in MN will get about $2000 a piece, is that enough? If you are upside down on your mortgage you might get as much as $17,000 but how far will that go? The program does not cover Fannie Mae or Freddie Mac loans and only applies to qualifying loans with the 5 big banks. In the end, 60-70% of people with a mortgage will not benefit from this plan. What do you think? Is this going to help people, is it a political ploy, will it stimulate the market or is it too little too late? For more information on the settlement, click here.