Short sales have long been a type of sale that many realtors, myself included, have tried to avoid. A short sale is a home that is for sale but the amount that the home is worth is “short” of the amount owed on the home. This means, that as realtors, we have to convince the bank that to accept less than the amount owed. while this does happen many times each year, we often have to wait months to hear back. This is all about to change for the better.
On Tuesday the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac (government agencies that own most homeowners loans) to establish new regulations and timelines in regards to the response of a short sale offer. Starting June 1st any home that is a short sale and whose loan is owned by one of these two government agencies, will require servicers to make a decision within 30 days of receiving an offer. If more than 30 days are needed by the bank then we are to receive weekly updates but no more than 60 days may be taken to come to a decision.
This is great news to both buyers and sellers of short sales. Currently there are no timelines in place and we are at the mercy of the bank. Back in October i wrote an offer on a short sale, I never heard anything back from the bank and my clients withdrew their offer in January. Knowing that we will only have to wait 30 days will make short sales much more desirable.
While this is still nowhere near as convenient as dealing with an independent seller, it is getting much better. I may even start to enjoy dealing with short sales!
If you want any more specific details or know someone who may want to buy or sell, let me know!