Homeowners have a multitude of questions when facing the possible loss of a home. The main two questions we here are: “How will a short sale affect my credit?” … and “when will I be able to buy another home. Did you know that Fannie Mae wants homeowners who short sale to own another home as soon as possible?
When every a homeowner ask you a financial or legal questions it is imperative that you advise them to seek the advice of professionals unless you are one. Some of the professionals they may speak to are major credit reporting bureaus, lawyers, mortgage professionals and even a financial advisor. Then communicate Fannie Mae policies on those who choose a short sale as an alternative to a foreclosure or deed in lieu.
Fannie Mae desires short sale borrowers to own again. In as little as two years those who have had a short sale may be considered for any type of loan program without restrictions. Homeowners that choose the deed in lieu option must wait 4-7 years before being consider for another loan. Borrowers that permitted their home to go to foreclosure must wait between 5-7 years before they are eligible for a loan for a primary residence with a sizable down-payment and strong credit score.
Here is the principal message Fannie Mae will loan to a borrower who took the short sale option faster and with less restrictions than those who choose foreclosure or deed in lieu. Short Sales save the homeowner, the lender and help the community.
This does not mean that Fannie Mae loans are fast to process as short sales. Fannie Mae’s should compel servicers to become more efficient in their review and processing of short sales. Fannie Mae preference of short sales is not reflected in their control on servicers handling the short sale reviews.
Short Sales help the homeowner, the lender and our community! Welcome your feedback!
[Based on information released by Fannie Mae in 08 and Short Sale Daily News]
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