Fannie Mae VP of Real Estate Sales, Jay Ryan, recently went on record pledging Fannie's support of short sales as a viable foreclosure prevention tool. He further stated, "Getting short sales done benefits everyone involved and we're committed to doing our part."
This is good news for underwater homeowners who need to sell their home through a short sale in Southern New Hampshire since Fannie Mae is the nations largest "owner" of loans. This means that regardless of who you make your payments to (Bank of America, Wells, Chase,etc.) there is a good chance Fannie Mae owns your loan.
The even better news is that this statement came as part of a news release introducing a new escalation tool available to resolve challenges to the successful approval and closing of a short sale. This tool will allow direct communication with Fannie Mae when issues with the Servicer (the party you make your loan payment to) are in danger of holding up or derailing a short sale.
This new tool is just the latest in a string of positive changes that have been announced by both Fannie Mae and Freddie Mac (the other giant mortgage "owner") over the last several months.
Other notable changes include:
- significantly shortening the time that Servicers have to respond to a short sale request (good for the seller and the buyer)
- obtaining delegation agreements with major mortgage insurance companies (that's one less step in the process)
- the ability to obtain short sale approval even if you are current on your mortgage if you have an eligible hardship
- a reduction in the documentation required for those most in need
All of these recent changes point to a major change in the way lenders are looking at defaulting loans. There is a huge shift away from foreclosure as the major loss mitigation tool and toward short sales as they finally realize that short sales really are in everyone's best interest.
Short sales have always been in the best interest of the distressed Southern New Hampshire homeowner because New Hampshire is a "deficiency State" which means that, in the case of a foreclosure, the lender has the right to go after the foreclosed upon borrower to recover the difference between what the borrower owed and what the lender ultimately sells the property for.
This has been a nasty surprise to some Southern New Hampshire Homeowners who thought they were "walking away" by letting their home be foreclosed upon.
A properly handled short sale addresses this and includes a waiver of deficiency so the troubled homeowner/borrower truly does get to "walk away".
For more information on these positive changes, take a peek at New Short Sale Guidelines: 3 Things Every Underwater Homeowner Needs To Know.
For more information on how to choose a Southern New Hampshire Short Sale Specialist, take a look at Is That Southern NH Short Sale Specialist Really A Specialist.
If you have questions about these changes to the short sale process or for a private consultation, contact me at 603-490-5344.