Fannie and Freddie are trying their best to improve their image. They realize a lot of the blame for the housing crisis was their fault and they’re looking to make some serious progress towards fixing the loopholes. Some of the biggest changes relate to short sales.
Here are some of the key changes going into effect early next year:
1) People who have files for bankruptcy will have an exception made for documentation requirements. (I think that one’s a no-brainer.)
2) Anyone with more than $50k in the bank asking for a short sale must get Freddie Mac approval. (Possibly makes sense.)
3) If documentation for the short sale is provided more than 37 days before foreclosure all legal proceedings halt. (That’s a huge milestone and a welcome change!)
4) Only submissions within 37 days of the foreclosure date will be eligible for expedited review. (This might just be the limits of what they’re capable of handling so I wouldn’t go too hard on them.)
I’m proud of the GSEs for the changes they’re making to encourage short sales. Let see if they bear fruit.