Fannie Mae must approve short sales on loans it owes or guarantees, but it depends on servicers to collect the correct financial information to qualify the short sales. In order for borrowers to qualify for a short sale, the borrower must be experiencing a financial hardship that prevents him from making his payments and market value of the property is less than the mortgage balance.
After reviewing Fannie Mae’s short sale transactions, the Office of Inspector General found many flaws in the servicers responsible for approving the short sales. It was reported that documents were missing, not reviewed or simply ignored in the process. This caused Fannie Mae to not receive all the required documents, so short sale were neither identified nor approved. The Office of Inspector General has submitted recommendations on how Fannie Mae can fix these problems, and they are also looking into Fannie Mae’s Low FICO Program.
We are the Short Sale Specialists in Dallas area and our goal is to make sure your short sale process goes smooth. For any question, please contact us directly at 972-342-0011