FHFA Announces New Short Sale Guidance

The Federal Housing Finance Agency has released their updated requirements for Short Sales. Servicers of Fannie and Freddie loans will be allowed to approve short sales for borrowers with severe financial hardship with limited documentation, provide borrowers who are current on their loan the option for a short sale if they face a financial hardship such as divorce, long distance employment transfer, or a severe disability, and provide valuation guidance to real estate agents early on in the short sale process.

Servicers are required to implement the changes by Nov. 1, 2012.

For the full release, see the FHFA’s News Release.

As always, for more information, please do contact me.

Thank you,


Short Sale Assistance for Military Families


Fannie Mae and Freddie Mac are stepping up and helping out Military Families that receive a Permanent Change of Station (PCS).  When Military personal receive a PCS they are required to move and thus may get caught having to short sell or come to closing with cash to move out of their current home. Fortunately for these families, Freddie and Fannie have agreed to allow short sales on the homes where they own the notes.

Under this policy if a Military family purchased any property before June 30, 2012 and receive a PCS order, then neither Freddie or Fannie will pursue a deficiency judgment, or any cash contribution or promissory notes. No need to add to the stress level of a Military family, and this is the right steps for Fannie and Freddie.

For more details on this story – you can click here:  Short Sale Assistance for Military Families.

Short Sale vs Foreclosure – 10 Common Myths Busted


Are you upside down on your home’s mortgage? Do you feel as if a Short Sale or letting your house fall into Foreclosure is your best option?  If  you are looking at one of these options, it is best to learn as much as possible about both of these paths. My friends at Keeping Current Matters have a great blog post about the myths of Short Sales and Foreclosures. Check out this link for the full article here for more details —>Short Sale vs Foreclosure – 10 Common Myths Busted.

Are You a Buyer Looking to Purchase a Short Sale?

In the market to buy a new home? Want a great deal and think that a Short Sale is the best option or vehicle for your discounted home purchase. A short sale real estate transaction may not be as smooth or as “discounted” as you may believe. If you are going to purchase real estate in a short sale, here are 4 items to consider:

1) On average the approval time for a short sale can take 60 to 90 days.

2) A misconception is that a short sale can sell for a big discount below the listed price (40% – 60%). Remember a bank will conduct its own valuation (BPO) to determine market value of the property. A discount yes, but not “half off.”

3) The entire short sale process can be tedious, make sure you work with both a Realtor and Attorney who are familiar with the short sale process.

4) Most short sale transactions are sold “As Is.”

For a more in depth look at these 4 points, check out my good friends at Keeping Current Matters. Here is a link to their full story:  Are You a Buyer Looking to Purchase a Short Sale?.

Short Sale Percentages by State

The sunbelt is still leading the National in % of sales that are short sales. This can equate to the regions that were hardest hit in the deduction of home values or loss of equity. The Southeast (particularly Georgia and Florida) were also hard hit with this loss of home values.