Fannie and Freddie have decided to get a little more serious in their efforts to avoid having to actually do anything. Yep, to skirt the issues of principal reductions and rate changes, meaning, anything that’ll cost them effort or money, they’ve decided to actually step up to bat with Short Sales.
Now, don’t get me wrong, I certainly encourage short sales and I’m happy Fannie and Freddie have gotten off their horses. But at the same time I think it’s pretty funny timing from organizations getting pounded from all sides to suddenly switch the focus of the discussion. But anyway, back to the topic.
So they’ve decided to force all lenders and mortgage servicers to render a decision on a short sale offer within 30-60 days. Response time is always a major concern. Now, they have 30 days to respond, and if they need up to 60 days they need to give the agent and homeowner weekly status updates.
This is a nice step in the right direction. If for nothing else, it will encourage people to try a short sale who ordinarily would think the process to slow. So I’m interested to see how the market reacts to this news (and how the lenders get around it!). Fannie and Freddie did a combined 125,000 short sales last year, so let’s see those numbers continue to jump.
What’s your take on this news? Think it’ll have any impact? Leave your thoughts below.