Beginning June 15, Fannie Mae and Freddie Mac will require mortgage servicers to make decisions on short sales under new guidelines, specifically:
- to acknowledge the documentation was received within three business days;
- to notify the borrower within five days if more paperwork is needed;
- to review and respond to a borrower within 30 days of receiving all documentation for short sale properties (the servicer can take up to 60 days on a decision if negotiations with mortgage insurers or other stakeholders linger); and
- to provide weekly status updates to the borrower if a short sale decision lingers past the 30 days.
The new Federal Housing Finance Agency (FHFA) guidelines are designed to assist the most inventory-constrained markets in the United States with inventory levels by moving properties through the short sale process more efficiently.
If you or someone you know is considering a short sale, contact me at (916) 370-1803 or firstname.lastname@example.org for a private consultation.