default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

President’s Corner Short sales to speed up

Font Size:
Default font size
Larger font size

Diane Gallagher

Posted: Friday, April 27, 2012 12:00 am | Updated: 8:34 am, Fri Apr 27, 2012.

Some changes are coming according to Fannie Mae and Freddie Mac. Beginning on June 15, loans backed by Fannie or Freddie should expect to have a decision on a short sale offer within 30 to 60 days. If 30 days or more are needed, servicers must provide the borrower with weekly updates and must come to a decision within 60 days from when they received the offer.

The Government Sponsored Enterprise (GSE) issued new guidelines last Tuesday, which fall under the Servicing Alignment Initiative, which rolled out last fall. This was aimed to bring greater transparency to the short sale process and expedite decisions related to the pre-foreclosure sales.

The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.

Edward DeMarco, acting director of the FHFA, says the GSE’s new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”

GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner. The Government Sponsored Enterprise (GSE) plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

Bank of America says, it's also making changes to its short-sale procedures which will shorten decision times on short sale offers to 20 days, down from 45 days or longer.

Look forward to next week.

If you have any questions or concerns please contact me at: larpres2012@yahoo.com. Diane is the President of the Lodi Association of Realtors.

More about

More about

More about

Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.

New energy program helps homeowners

The Lodi Association of Realtors in partnership with the California Association of Realtors Housing Affordability Fund and green home contractor Greener Solutions has just announced a new energy program starting Jan. 1, 2015.

Posted: January 23, 2015
Comments (0)
more »

Loan Calculator

Your News

News for the community, by the community.

Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists