Since short sales starting showing up about two years ago we have come a long way. It has been a very steep and painful climb but finally we have some encouraging news! Much needed guidelines have been put into place to accelerate agreements between lenders, agents, homeowners & buyers. Here are some of the highlights effective as of April 5, 2010. Fannie Mae & Freddie Mac have their own rules, one of my favorites is they must respond to a short sale offer within 2 weeks. This may actually change the 6 months it seems to take to get a short sale closed.
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
• Prohibits servicer from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).
• Requires borrowers to be fully released from future liability for
the first mortgage debt (no cash contribution, promissory note, or
deficiency judgment is allowed.)
• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicer to cover administrative and processing costs; and up to $1,000 for investors.