Southern New Hampshire Real Estate and Short Sales: Fannie Mae: "Getting Short Sales Done Benefits Everyone Involved"

Fannie Mae: "Getting Short Sales Done Benefits Everyone Involved"

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 sinceUnderwater Homeowner 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.

 

Comment balloon 4 commentsJoy Baker • February 14 2013 07:18AM

Comments

Good Morning Joy, Very nice topic as there as been so many misconceptions about Fannie Mae and so much heartache and stress trying to get these done. I hope things are well... Have a great Thursday

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) over 5 years ago

Morning Scott and thanks for the kind words.  You are correct, there's lots of misconceptions and misunderstanding about all aspects of short sales.  Hope all is well with you, too!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 5 years ago

Having a direct way to communicate with Fannie Mae is huge since our MLS never offered the Fannie Mae desk.  I just closed a short sale with Fannie Mae last month (after over 14 months).  The negotiator was for the most part non-responsive and when he did respond, he usually did not provide useful information.  Worst communicator ever and escalating within servicer got me nowhere because the manager just referred me back to the negotiator who then was just annoyed with me because I had dared to contact his manager.  Starting negotiations on a new short sale involving Fannie Mae loan and hoping for smoother communication.  My advice to everybody, get the Fannie Mae Authorization signed by borrowers so that you have in your file in case you need to escalate file to Fannie Mae.

Posted by Ute Ferdig, Because Getting It Right Matters! (Ferdig Real Estate Solutions) over 5 years ago

Good advice, Ute.  My MLS never offered the Fannie Desk either but I was able to go directly to them anyway on the occasions that I had a servicer who was behaving badly on one of their loans.  May all your future short sales go smoothly!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 5 years ago

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