On November 1st 2012, as part of FHFA’s Servicing Alignment Initiative, Fannie Mae and Freddie Mac will implement new short sale guidelines to make the approval process faster and easier for eligible borrowers.
Here are the new changes:
- Streamlined documentation requirements (borrowers who are delinquent 90 days or more and have a credit score lower than 620 will no longer be required to prove hardship).
- The right to pursue deficiency judgements waived
- Freddie and Fannie to offer up to $6,000 to second lien holders as incentive to approve the short sale
- Borrowers who face specific hardships like loss of a co-borrower, divorce or legal separation, illness, disability, military or a job relocation of more than 50 miles will be eligible for a short sale even if they are not behind in payments.
If your loan is serviced by Fannie or Freddie you may also be eligible for upwards of $5,000 under the HAFA program.
Call us today if you have questions about the new program or to find out if your lender qualifies.