Continue reading " />

Arizona Short Sale Articles →     

Arizona Short Sale      Arizona Short Sale Help      Short Sales In Arizona      Short Sell Investment Property

Arizona Short Sales: Speed Up Thanks To The Feds

by Charlie Allred

Recently, The FHFA (Federal Housing Finance Agency) released new, clearer instructions designed to help mortgage servicers speed up the short sale process. The announcement came on Tuesday in conjunction with an effort to stream line Fannie and Freddie which are basically government sponsored mortgage servicers.

“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities. The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.” ~ FHFA acting director Edward J. DeMarco

This whole initiative is aimed at simply speeding up the long and sometimes arduous process of short selling your home. In Arizona it is not uncommon for a short sale to take 90 days or longer! Frustrated home owners and Arizona short sale experts have had enough and are ready for a change.

To that end, the new FHFA rules include:

  1. Special treatment for military personnel with “permanent change of station” orders. Service members who are being relocated will be automatically eligible for short sales even if they are current on their existing mortgages. They also will be under no obligation to contribute funds to cover the difference between the outstanding loan balance and the sale price of the home.
  2. A streamlined short sale approach for the most distressed borrowers. The documentation required to demonstrate need has been reduced or eliminated in order to expedite short sales for borrowers who have missed several mortgage payments, have low credit scores and are in serious financial distress.
  3. Guidance on processing a short sale when a foreclosure sale is pending. The guidelines will clarify when a borrower must submit their application and a sales offer to be considered for a short sale, in the hope that last-minute negotiations and communications are handled fairly.
  4. Consolidation of existing short sale programs into a single program. Loan servicers will have more consistent guidelines, which should make it easier to process short sales.
  5. Second lien holder incentives like: Fannie and Freddie will offer up to $6,000 to second-lien holders to expedite a short sale. Previously, second-lien holders could slow down the short-sale process by negotiating for higher bids.

All of this comes on the heels of a worse than expected jobs report and an economy that continues to struggle. Unless and until the jobs situation turns around there can be no real growth in home prices as income is necessary to support price increases. The government continues to try and “stimulate” the economy which only results in inflation. With higher costs and a sluggish job market, the recipe is set for nearly 7 million new foreclosures nationally!

If you find yourself on the cusp of stay or go via an Arizona short sale… Even if it is for no other reason than a financial one, you owe it to yourself or your family to look into a short sale. It could mean saving yourself years of recovery from a foreclosure.

Contact The Arizona Short Sale team for more information and be sure take advantage of our Free 7 Day Short Sale Course!

Be Sociable, Share!

Leave a Comment

Previous post:

Next post: