Wednesday, May 30, 2012 / by Carlos J Higareda
Buying or selling by using a short sale can be a long/stressful process. The big lenders are working to increase response time and with the new guidelines for short sale reponse time the process should become easier. Buyers & Sellers should know the status of the foreclosure process before proceeding to buy or sell. We have a team of experts in our office that can help you find the right answers!
Short-Sale Process Expected to Speed Up in June
The short-sale process is expected to get shorter starting June 15. New guidelines issued under the Federal Housing Finance Agency will require Fannie Mae and Freddie Mac to give home buyers of short sales notice of their final decision within 60 days. The new guidelines also will require the mortgage giants to respond to initial short-sale requests within 30 days of receiving an offer from a potential buyer.
The speedier process is expected to be a boost to the housing market, Michael McHugh, president of the Empire State Mortgage Bankers Association, told the New York Times. Home buyers and sellers often have to wait months before they receive a decision from a lender on an offer for a short sale. Some deals fall apart just from the long wait alone.
Short sales have been increasing in recent months, as many lenders find them more appealing than foreclosures, which can be much more costly and take longer to remove from their books.
Short sales now outpace foreclosure sales in many parts of the country. Short sales represent more than 14 percent of existing-home sales, according to CoreLogic housing data from March, the most recent month available.
Source: “Speeding Up Short Sales,” The New York Times (May 24, 2012)