Industry NewsMortgage

Realtors applaud streamlined short-sale guidelines

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Short sales, already on the rise this year, are expected to get an additional boost from a move by federal regulators who oversee Fannie Mae and Freddie Mac to streamline paperwork and offer up to $6,000 to second-lien holders who can derail the process.Fannie Mae and Freddie Mac will offer up to $6,000 to second-lien holders to expedite a short sale, the Federal Housing Finance Agency announced this week, and require reduced or no documentation from borrowers who have missed several loan payments, have low credit scores, or have serious financial hardship.For borrowers who are still current on their mortgages, loan servicers will have more leeway to process short sales for homeowners facing hardships like a death in the family, divorce, disability, employment transfer or relocation.Military personnel being relocated will be eligible for short sales automatically, even if they are current on their existing mortgages, and will be exempt from deficiency judgments.Other homeowners who ...