Short Sales ~ CDPE Certified Learn the latest form ~ Fannie and Freddie

New guidelines for Short Sales. Hopefully they will take less time and the process can start before you are deliquent on payments. As a Realtor who has closed allot of short sales I am now hoping especially for our MILITARY who are be based to another duty station and is under water can start the short sale process before they move and become deliquent. If you don't know a short sale, a home is sold for less than the amount owed and the lender generally agrees to forgive the remaining balance. They can send you a 1099 and tax you on the difference of what is owed and what they agree to accept in the short sale. Today, Fannie and Freddie approve short sales only for borrowers who are delinquent on their payments. Under the new rules, Fannie and Freddie will approve short sales for borrowers who can document specified hardships: the death of a borrower or co-borrower, divorce or legal separation, illness or disability, or a move of more than 50 miles to get a new job. For borrowers who meet these rules, servicers will not have to get approval from Fannie Mae or Freddie Mac before approving the short sale, which should speed up the process. Borrowers who are current on their payments and unemployed might qualify for a short sale, but it would need to be approved by Fannie or Freddie; servicers couldn't do it automatically. Fannie and Freddie also will expedite short sales for borrowers who are at least 90 days delinquent on their payments and have a Fico credit score below 620. These borrowers will no longer have to document a financial hardship, and servicers will no longer have to get approval from Fannie or Freddie. If there is a second mortgage on the home, the owner of the second mortgage must agree to the short sale before it can go through. They often will in exchange for a payment, but the negotiation takes time. To speed it up, under the new rules, servicers can offer a flat, take-it-or-leave-it payment equal to 100 percent of the second mortgage up to $6,000. They can't ask homeowners to kick in more. If you have questions on short sales or need assitance in doing a short sale log on to my website at www.dianesellspensacolahomes.com.