Feb. 7, 2013
According to Freddie Mac, short sales are speeding up. Last November, Freddie Mac launched its new Standard Short Sale program, which seeks to cut down the amount of time a short sale takes by as much as 75%. It also is designed to make the entire process more transparent.
Here are some of the changes that took effect:
- Mortgage servicers now have 30 days to make a decision on a short sale once they receive an application and an additional 30 days if they need to negotiate with a third party. If more time is needed than the initial 30 days, servicers must provide weekly status updates if they need more time to review the application. A final decision is required by the 60th day.
- Servicers must acknowledge they have received the short sale application within three days of submission.
- Servicers have the authority to approve short sales for qualifying financial hardships for homeowners who are past due or current on mortgage payments.
- Servicers are also now able to approve short sales without seeking a time-consuming separate review by the mortgage insurance company.
- Homeowners may be able to qualify for up to $3,000 in relocation assistance after a short sale.
To learn more information, visit Freddie Mac’s Avoiding Foreclosure Resource Center.