According to an article on DsNews, Fannie Mae and Freddie Mac has recently announced some changes to their Servicing Guides. These changes were announced to help more borrowers avoid foreclosure through short sales and deeds-in-lieu of foreclosure (DILs).
Changes in the Short Sale Policies are effective on January 10th and here is the summary: 1 – Documentation Exceptions
o Mortgage debts that have settled in a Chapter 7 bankruptcy are accepted
o Original investment properties are no longer accepted, and a Borrower Response Package will need to be completed
2 – Cash reserves that exceed $50,000 must be approved through Freddie Mac
3 – Foreclosures must be stopped, if the Borrowers Response Package is received more than 37 days prior to the scheduled foreclosure date
4 – An expedited review is not required if a completed BRP and short sale offer is received before 37 days prior to the foreclosure date, but will be required if it is between 37 and 15 days. Read more here: http://www.dsnews.com/articles/gses-update-short-sale-policies-2013-11-25
If you have any questions related to Short Sales, feel free to contact us anytime at 972-342-0011