Short Sales are Finally a Short Sale

by lotag

On November 1st, 2012, Freddie Mac finally decided to ramp up their short sale program for a faster and easier response from the lender.

Freddie Mac stated early morning on January 22nd 2013 about the recent changes to their short sale program. They’ve “worked with our [their] regulator, the Federal Housing Finance Agency, to remove obstacles and streamline the process so we can help more borrowers and reduce costs for the company and taxpayers.”

This would provide a shorter short sale that will have long ranged benefits for borrowers. It was created as part of Freddie Mac’s pledge to help homeowners with underwater homes and to avoid the last resort of a foreclosure by boosting their efficiency. Some of the changes created included:

  • Quicker Decisions: Servicers must reply in 30 days with a decision starting the day they are given a full and complete package. They can only have an additional 30 days beyond that if there are third parties involved (i.e., second lender/mortgagors). However, a final decision must be done by day 60.
  • Expanded Delegations: They’ve allowed authority to their servicers to approve short sales for a faster response on qualifying financial hardships. They’ve also added independent authority to approve short sales without a third party that could possibly be time consuming.
  • Communication: Increasing transparency into the process by keeping borrowers and realtors informed. The servicers have to acknowledge receipt of a complete short sale application within three days of being submitted. If more time is needed, the servicer must send a weekly status update.
  • Clear escalation process: The escalation process must be communicated in writing to the borrowers. It should also include a “dedicated 800 number”.
  • Relocation Assistance: Homeowners can qualify up to $3000 or more in relocation assistance when a short sale is completed.

If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 877.442.4577 or send me an email at tgreene@tedgreenelaw.com or just visit my website http://www.upsidedownca.com.

Advertisements