Breaking News: GSE Short Sales No Longer Require Default

By
Real Estate Agent with Lyon Real Estate BRE #00697006

fannie mae short saleI was so excited when I heard the news yesterday that sellers don't have to be in default anymore to do a government short sale, I was jumping up and down. Thanks to my friend at Bank of America who sent me the press release from FHFA. My handyman was over at the house working on my garage roof, so I yammered on and on about it to him. Not that he probably cares but he has more to say to me than other occupants of the house, which would be meow, meow.

This is huge. HUGE. The FHFA had just announced that sellers who want to do a Fannie Mae short sale or Freddie Mac short sale no longer need to be in default. These sellers can be current on their mortgage payment. As long as they have a hardship, the bank will be given delegated authority to approve their short sale. The new guidelines go into effect on November 1, 2012.

As I was jumping up and down with glee over this short sale news, Ken Harney at the Washington Post called to talk about it. I bent his ear for a while, too. I imagine you'll see a piece soon by him online.

Read more about Feds to Allow Current Mortgage Payments for Short Sales.

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Certified HAFA Specialistelizabeth weintraub

 

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Elizabeth Weintraub is an author, home buying expert for About.com, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area with an emphasis on Elk Grove. Call Elizabeth Weintraub at 916.233.6759. Put 40 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. BRE License # 00697006.

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Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Kim Carlson 08/22/2012 07:12 AM
  2. Inna Ivchenko 08/22/2012 11:07 AM
Topic:
Home Selling
Groups:
Short Sale Specialists & Pre-Foreclosure Education
Legal Aspects of Short Sales, Foreclosures, Loan Mods
Lyon Realtors
Short Sales Specialists
Short Sale REALTORS®
Tags:
fhfa
ken harney
short sale news
freddie mac short sale
fannie mae short sale
current mortgage payments short sale

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Show All Comments
Rainer
107,327
Kathleen M. Feeney
Cafe Realty - Katonah, NY
Mt. Kisco Real Estate - EcoBroker

fantastic news - never could understand why you had to go into de-fault first - It is about time they took care of folks that are trying to do the right thing.

August 22, 2012 07:07 AM #1
Rainmaker
320,937
Kat Palmiotti
Better Homes & Gardens Rand Realty, Monroe NY Real Estate, 914-419-0270 - Monroe, NY
The House Kat

That is wonderful news - thanks for sharing!  (with the handyman, the cats, and us!)

August 22, 2012 07:29 AM #2
Rainmaker
306,780
Inna Ivchenko
Mannis Real Estate Group - Calabasas, CA
Los Angeles / Valley Homes

Great news! Sharing, re-posting:)

I heard about it, but i still don't understand yet : what are all outdomes for such sellers.

It will become easier to get a Short Sale approval, but sellers  will still damage their credits? also they talk about pursuing deficiency judgment?  ( even it is up to 6k to a junior lender)

August 22, 2012 11:00 AM #3
Rainmaker
1,197,420
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Hi Kathy: I know, it just blows me away that the government could have put people in that situation. I have a client whom Freddie Mac demanded that he had to be 90 days delinquent. 90 days!!

Hi Kat: You know me, I'd talk to the guy walking his dog across the street.

Hi Inna: Yes, there will be no deficiency, and they will pay up to $6,000 to a junior lender -- which sounds great until you realize there is no deficiency on a short sale in California anyway AND most lenders are getting up to $8,500, thanks to the June supplemental to HAFA, which sort of sets the standard expectations.

 

 

August 22, 2012 11:10 AM #4
Rainmaker
306,780
Inna Ivchenko
Mannis Real Estate Group - Calabasas, CA
Los Angeles / Valley Homes

Yeh, I know, but we had a meeting where I heard that they plan on bringing DJ into CA~hopefully not.

Btw, i visited your blog to read more details.......love your picture on a bicycle!

( I just love the whole composition and colors:) and a beautiful warm smile! )

August 22, 2012 11:21 AM #5
Rainer
75,358
Mary Elizabeth Allen
Lake Monticello, VA

That's fantastic news! It never made sense to me why the government would TELL someone to default. Completely antithetical to the notion of financial responsibility. So glad they finally came around!

 

August 22, 2012 11:57 AM #6
Rainmaker
220,174
Pamela Smith
Long Realty West Valley - Sun City West, AZ
Sun City West, Corte Bella, Sun City Grand

Elizabeth,

Thank you for the good news. 

I hope everything turns out well with the garage!

August 22, 2012 03:38 PM #7
Rainmaker
949,699
James Dray
Wise Custom Realty - Bentonville, AR
AR., MO., or OK. I can find the home for you.

Morning Elizabeth I know if your excited it must be good news.  I'll wait and see the release before I start to jump up and down. 

August 23, 2012 04:09 AM #8
Ambassador
1,880,185
Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

That's awesome news!  I honestly don't know why it was ever a requirement to be delinquent any way if someone could prove a hardship.

August 23, 2012 07:53 PM #9
Rainmaker
694,270
Lanre Folayan
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC - Washington, DC
Buy a home in Washington DC. Sell your DC Home Now

Elizabeth this is great news. Thank you very much for sharing this. This is worthy of a FEATURE. Have a great weekend.

August 24, 2012 11:09 AM #10
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Rainmaker
1,197,420

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents

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