Good news this morning on the short sale front. The Federal Housing Finance Agency (FHFA) has new rules aimed at speeding up the process, thus cutting down on the number of short sales that end up in foreclosure.
If you’ve dealt with even one short sale you know how long the review and approval process typically takes. You also know how challenging it is to hang on to a buyer during this period. Deals die and homes go back to the bank.
I feel for you California agents. According to a report on CNN Money this morning, 60 percent of your short sale deals fell apart last year. The report goes on to say that most of these botched deals can be attributed to lengthy lender response times.
So, this will be especially good news to you short sale warriors, frustrated by the current system.
FHFA now gives lenders 30 days to review and respond to a short sale request and must have a final decision within 60 days. Not only that, but the lender has to supply the borrower with weekly updates once the 30 day time limit is up.
Look for these new rules to go into effect on June 1. I know, you sure could’ve used this at the height of the short-sale mess, but better late than never, right?