11 Feb Freddie Mac’s New Short Sale Process Takes Shape
It’s been three months already, but Freddie Mac’s new Standard Short Sale program is starting to take shape and gain a foothold. The GSE is working tirelessly to advertise the program to the public in the hope of growing it, not to mention shed light on the variety of options for borrowers.
Adds Tracy Mooney, SVP on the Executive Perspectives Blog that Freddie Mac puts out, “Early results indicate that this program is beginning to take hold with home owners and realtors.”
It really is a great program for borrowers, and with more of the onus placed on loan servicers, Mooney says she expects the program to reduce short sale timelines by between 50-75%. Lenders will now have more authority to review a potential client’s application, but must stay within a 30-day timeline to issue a decision about a short sale. For those lenders who require more time before making a decision, they are allowed, at most, 30 more days.
So, how are mortgage servicers able to meet these abbreviated deadlines? For one, Freddie Mac is allowing them to approve short sales without consulting mortgage insurance companies. That doesn’t absolve them from having to determine the financial hardship situation of short sale applicants though.
For home owners who are interested in pursuing a short sale, they should determine if Freddie Mac owns their home loan by using the Loan Look-Up Tool online, and then touching base with their servicer for more information on how to apply.
This March, Freddie Mac will begin another new program to assist with the deed-in-lieu of foreclosure process.