FHFA Issues New Short Sale Guidance

The Federal Housing Finance Agency just announced new guidance requiring servicers of Fannie Mae and Freddie Mac loans to speed responses to short sale requests. The new guidelines will go into effect June 15th of this year. For some time now both Realtors and consumers have been looking to speed up the process for approval of short sales. The reason Realtors and consumers have been pushing for the process to be simplified and sped up is due to a number of benefits that a short sale can have on the neighborhood and the family: When a family is absolutely incapable of staying in their home, a short sale can minimize the negative impact on both the seller and the community. Streamlining the approval process cuts down on the amount of time it takes to sell the property, increases the likelihood that the transaction will close, and reduces the number of foreclosures. Short sales also help stabilize home values and neighborhoods by keeping homes occupied, which benefits the housing market and aids in the recovery. These changes should minimize the ongoing delays in the approval process and thus decrease the negative impact that slow response times are having on all aspects of the industry from the buyers and sellers to the lenders and the market itself.

For more real estate tips turn to Encinitas Realtor Linda Moore.