Posted on: 28th Aug, 2012 02:18 am
in a recent update it was announced that under new guidelines by fannie mae and freddie mac, the homeowners may be able to sell off their homes easily through short sales. it is also announced that the measures will be available to people who face financial difficulties in paying their mortgages but haven't missed mortgage payments.
under this new plan, fannie mae and freddie mac will be able to place a $6,000 cap on the amount of money which the second mortgage holders can receive when the sale is completed. this will help them prevent the mortgage holders from haggling over their part of the home-sale proceeds. however, the second-lien holders would still be able to reject the sales if they saw fit.
the new short sale rules may go into effect on and from november 1, 2012. it will allow homeowners with missed mortgage payments and serious financial problems to submit fewer documents to get approved for a short sale.
under this new plan, fannie mae and freddie mac will be able to place a $6,000 cap on the amount of money which the second mortgage holders can receive when the sale is completed. this will help them prevent the mortgage holders from haggling over their part of the home-sale proceeds. however, the second-lien holders would still be able to reject the sales if they saw fit.
the new short sale rules may go into effect on and from november 1, 2012. it will allow homeowners with missed mortgage payments and serious financial problems to submit fewer documents to get approved for a short sale.
Thanks for sharing this Sara… The changes that will usher due to this new rule will only affect the underwater mortgages which have been guaranteed by Fannie and Freddie. The best part is that bulk of U.S. home loans are backed by Fannie and Freddie. The FHFA has the authority, as regulator for Fannie and Freddie, to force changes on the lending industry.
Many are of the opinion that $6,000 may not be enough for many second mortgage holders who hold out on approving short sales because they don't have the right to foreclose on properties and are seeking ways to get paid. The amount may not satisfy them.
FHFA didn't guesstimate how many people would qualify for short sales, but about 4.6 million borrowers with loans backed by Fannie or Freddie are underwater. And out of this, there are around 80% homeowners who have missed no mortgage payments.
FHFA didn't guesstimate how many people would qualify for short sales, but about 4.6 million borrowers with loans backed by Fannie or Freddie are underwater. And out of this, there are around 80% homeowners who have missed no mortgage payments.