Significant Freddie Mac Short Sale Changes
This week I sat in on a webinar offered by Freddie Mac. The purpose was to educate short sale agents and would be short sale agents on recent changes Freddie Mac made to the way they handle short sales. It was overall a useful webinar full of lots of great information. Notably, in some circumstances, Freddie Mac will approve short sales without a missed payment. And now, Freddie Mac gives delegated authority for short sale approvals to the servicer when the borrower meets one of the “Four Ds” of short sale hardship eligibility.
What are the “Four Ds” of short sale eligibility:
- Divorce
- Death
- Disability
- Distant Transfer (50 Miles)
What does this mean to prospective short sale sellers? “Delegated authority” to the servicer means a quicker short sale approval time frame. So, now when you apply for a short sale with Bank of America or CHASE or another servicer, if you meet one of the 4 eligibility categories, the servicer has the ability to issue a short sale approval without sending the decision to Freddie Mac. They can make the decision at the servicer level using Freddie Mac’s well established guidelines. If the reason for hardship does not fit without the “four Ds,” the borrower may still be able to qualify for a short sale without a missed payment; however, the approval decision will have to be forwarded to Freddie Mac.
Does Freddie Mac own your loan? Check here.
Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Barbara County or San Luis Obispo County home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.
Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.
Copyright© 2012 Tni LeBlanc *Significant Freddie Mac Short Sale Changes*
