Alert September 05, 2012

FHFA Announces Short Sale Guidelines

The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac issued new guidelines regarding short sales that go into effect on November 1, 2012. Under the new guidelines, homeowners with an eligible hardship will be able to sell their homes through a short sale, even if their mortgages are current. In addition, servicers can expedite processing without Fannie Mae or Freddie Mac’s approval for certain borrower hardships, including death of a borrower or co-borrower, divorce, disability or job relocation. Other key features include offering second lien holders up to $6,000 to expedite the processing of a short sale and evaluating whether a borrower has the financial capacity to cover shortfalls resulting from a short sale.