Home > Real Estate > Nov 1 Faster Short Sales and Deed-In-Lieu

Nov 1 Faster Short Sales and Deed-In-Lieu

— Photo Courtesy of themortgagespecialists.com —

November 1 begins the start of new rules   for short sales  which has consolidated the process into one new streamline program easier to execute, faster  and   includes lender requirements to respond to short sales within 30 days of the offer, provide weekly updates and communicate final decisions within 60 days of receipt of offers.

No longer will borrower need to be in default to qualify for a short sale if their mortgage is backed by Fannie Mae or Freddie Mac as long as they have hardship such as death of a borrower or co-borrower, divorce, legal separation, illness, disability or distant employment transfer.

Deficiency judgements (balance between short sale and owed amount) may be eliminated with some funds paid at closing.  Military borrowers are not required to pay funds to negotiate the elimination of deficiency judgements.

Servicers working with Fannie Mae and Freddie Mac   will be able to skip a step when attempting to get a short sale or deed-in-lieu of foreclosure approved  by the elimination of approval by mortgage insurer as part of the  process and according  to the new standard delegation agreements.

“Short sales and deeds-in-lieu are important tools to prevent foreclosures and help struggling borrowers,” said Leslie Peeler, SVP of national servicing organization at Fannie Mae. “These delegation agreements create an even more streamlined process that will ultimately help more families avoid the costly effects of foreclosure and benefit taxpayers. We are pleased that the mortgage insurance companies have stepped up to the plate with us to help more homeowners.”

Should a borrower not make a  20 percent downpayment, the borrower is then required to have a mortgage insurance.  Agreeing to the terms are the following mortgage insurers:  CMG Mortgage Insurance Company; Essent Guaranty, Inc.; Genworth Mortgage Insurance Corporation; Mortgage Guaranty Insurance Corporation; PMI Mortgage Insurance Co.; Radian Guaranty Inc.; Republic Mortgage Insurance Company; Triad Guaranty Insurance Corporation, and United

References:
Fanniemae.com
Belairpatch.com
Zillow.com
DSNews.com 

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