Great News For Short Sale Buyers

Great News! Short Sale headache is soon to end! Yes, I know dealing with a major bank is a headache. But dealing with a major bank through a Short Sale process takes the cake.

Fannie Mae and Freddie Mac will require mortgage servicers to make decisions on short sales under new timelines beginning this June.

Servicers must review and respond to a borrower within 30 days of receiving all documentation. According to guidance released Tuesday, the servicer can take up to 60 days on a decision if negotiations with mortgage insurers or other stakeholders linger.

Short sales have in the past taken several months to complete as servicers, borrowers, buyers, investors and different lien holders had to agree on a transaction. Mortgage servicers working with the goverment-sponsored enterprises completed a record 32,000 short sales in the fourth quarter, up 14% from the previous quarter, according to agency data.

Under the new guidance, which takes effect June 15, the servicer has three business days to acknowledge the documentation was received, and must notify the borrower within five days if more paperwork is needed.
If a short sale is still under review after 30 days, the servicer must provide weekly status updates to the borrower.

The Federal Housing Finance Agency directed the GSEs align their short sale guidelines.
"FHFA and the enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities," said FHFA Acting Director Edward DeMarco. "These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives."

This article was written by 

By Jon Prior • April 17, 2012 • 4:38pm

To read this and other real estate stories visit...

http://www.housingwire.com/news/fannie-freddie-set-new-short-sale-timelines

This Week’s Forecast

DID YOU KNOW?... The typical home purchased in 2011 was built in 1993, with three bedrooms and two bathrooms in 1900 square feet of space, as reported in the latest NAR survey. >> This Week’s Forecast BUDGET, FED VIEWS, INFLATION... Wednesday's March Federal Budgetshould show the government running a big deficit, no surprise there. This will be followed by the Federal Reserve's Beige Book of economic observations from Fed districts around the country. Could be some good stuff. But the big reports will be PPI wholesale inflationon Thursday and CPI consumer inflationcome Friday. The monthly numbers are expected to reflect annual inflation rates slightly above the Fed's 2% target. This is not good, as inflation cuts consumer buying power, sends mortgage bond prices lower -- and mortgage rates up! >> The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. Economic Calendar for the Week of Apr 9 – Apr 13 Date Time (ET) Release For Consensus Prior Impact W Apr 11 10:30 Crude Inventories 04/07 NA 9.009M Moderate W Apr 11 14:00 Federal Budget Mar NA –$188.2B Moderate W Apr 11 14:00 Fed's Beige Book Apr NA NA Moderate Th Apr 12 08:30 Initial Unemployment Claims 04/07 355K 357K Moderate Th Apr 12 08:30 Continuing Unemployment Claims 03/31 3.350M 3.338M Moderate Th Apr 12 08:30 Producer Price Index (PPI) Mar 0.3% 0.4% Moderate Th Apr 12 08:30 Core PPI Mar 0.2% 0.2% Moderate Th Apr 12 08:30 Trade Balance Feb –$52.0B –$52.6B Moderate F Apr 13 08:30 Consumer Price Index (CPI) Mar 0.3% 0.4% HIGH F Apr 13 08:30 Core CPI Mar 0.2% 0.1% HIGH F Apr 13 09:55 Univ. of Michigan Consumer Sentiment Apr 76.1 76.2 Moderate >> Federal Reserve Watch Forecasting Federal Reserve policy changes in coming months... The Fed said it intends to keep the Funds Rate low for quite some time, which is what economists expect. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same. Current Fed Funds Rate: 0%–0.25% After FOMC meeting on: Consensus Apr 25 0%–0.25% Jun 20 0%–0.25% Jul 31 0%–0.25% Probability of change from current policy: After FOMC meeting on: Consensus Apr 25 <1% Jun 20 <1% Jul 31 <1%

For more information on Lending Contact Bailey & Wood Financial Group Juli Harding Loan Officer 51 North US 31 Whiteland, IN, 46184 Cell: 812-325-6953 Toll Free: 855-350-HOME Fax: 877-811-1269