Branch Manager/Mortgage Consultant
Windermere Mortgage Services Series LLC/Walla Walla
202 South First Avenue
Walla Walla, WA 99362
Office: (509) 525-2636
Cell: (509) 200-1971
Fax: (509) 525-2673
November 15th, 2012
Fannie Mae and Freddie Mac have recently issued new short sale guidelines to their mortgage servicers. The intent of these new guidelines is to consolidate existing short sales programs into one standard short sale program, and streamline program rules in order to quickly and easily qualify eligible borrowers for short sales. The new guidelines took effect November 1, 2012.
The new process should benefit buyers with shorter approval response times and benefit sellers by giving them the ability to move on with their life much sooner.
A summary of the changes:
- Short sale documentation to be reduced or even eliminated for those who are behind on payments, have bad credit and serious financial hardships.
- Servicers will now be allowed to approve short sales without investor approval for those who are current on payments but face certain hardships including: death, divorce, disability, and distant employment transfer or relocation.
- Fannie Mae and Freddie Mac to waive the right to pursue deficiency judgments in exchange for a financial contribution when a borrower has sufficient income or assets.
- Service members who are being relocated will be automatically eligible for short sales and will not be asked to contribute funds.
- All short sale programs are to be consolidated into a single uniform program with clear and consistent guidelines.
- Servicers and borrowers to receive clear guidance on processing a short sale when a foreclosure sale is pending.
- Fannie Mae and Freddie Mac will offer up to $6,000 to second lien holders to expedite the short sale process.
- As announced in June, servicers are still required to review and respond to short sales within 30 days of receipt of a short sale offer and communicate final decisions to the borrower within 60 days of receipt of a complete short sale package.
- These borrowers will not be eligible for a new mortgage backed by Fannie Mae or Freddie Mac for at least two years after a short sale.
Please contact Jack Kammer (NMLS ID#114274) with any questions.
March 24th, 2011
I am excited to now be here at Windermere and I attended my first open house tour this week. Two homes stuck out. Both nice homes but my favorite one was $40K more than the other. I commented to an agent “I bet a lot of people don’t realise that for what they spend on coffee, expanded cable and a few other extras each month, they could easily finance the additional $40K.” Its amazing how affordable homes are right now with rates staying near 40 year lows. My clients are buying more home than they thought possible.