Short Sale Blog

Here is the latest short sale news at Seattle Short Sales. We assist hundreds of Seattle area homeowners with short selling their home and avoiding foreclosure.

Freddie Mac’s “Shorter Short Sale”

Seattle Short Sales - Saturday, February 02, 2013

Freddie Mac Executive Vice President Tracy Mooney published a blog post last week outlining how short sales are about to become even faster, easier, and more transparent. We wrote an article about Freddie’s new “Standard Short Sale” program last November, back when those new guidelines first came into effect. A highlight of that program is that loan servicers (the bank you hold your mortgage with) are now authorized, in many cases, to approve short sales - without having to pass the file by the investor (Freddie, Fannie, etc.) or the mortgage insurer.

Mooney’s article focuses on how the new “Standard Short Sale” guidelines will make the short sale approval process faster. In fact, Mooney estimates that these new guidelines will knock off 50 to 75% off of short sale approval timelines! Some of the guidelines that will improve short sale processing times are:

  • Timelines for decisions: Servicers are supposed to make a decision about a short sale within 30 days of receiving the completed application. They may take up to 30 additional days if time is required to negotiate with third parties.
  • Better communication: If servicers take the extra 30 days to make their decision, they must provide weekly status reports.
  • Better escalation process: Servicers must provide borrowers with a clear procedure in order to escalate their file, including a dedicated 1-800 number for that.

Fannie Mae is also following these Freddie guidelines. Most residential home loans in America are backed by either Freddie Mac or Fannie Mae. You can find out whether your mortgage loan is owned by Freddie here: https://ww3.freddiemac.com/corporate/. You can find out whether your mortgage loan is owned by Fannie here: https://www.knowyouroptions.com/loanlookup

Seattle Short Sales has a team of experienced and successful real estate specialists dedicated to working with distressed homeowners. We close, on average, 12% of all short sales per month in King County. In the last 24 months, we have negotiated over 756 short sale approvals, and discounted over $81 million of mortgage debt for distressed homeowners.

In addition to our short sales negotiators, our team includes dedicated professionals advising and advocating for homeowners in the fields of: loan modifications, bankruptcy, debt settlement and collection defense. As part of our service, we offer unlimited attorney and CPA consultations.

If you are a homeowner who is struggling to make ends meet, and would like to learn more about the options available to you, please go to: http://seattleshortsales.com/homeowners/


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