Lake Arrowhead Short Sale Fannie Mae Update: Announcement SEL-2010-05 April 14, 2010
Underwriting Borrowers with a prior Short Sale or Deed-in-Lieu of Foreclosure
To support overall real estate market and reinforce the importance of borrowers working with their servicers when they have difficulty repaying their debt, Fannie Mae is updating several policies regarding the future eligibility of borrowers to obtain a new mortgage loan on real estate after experiencing a short sale event (preforeclosure sale, short sale, or deed-in-lieu of foreclosure). The “waiting period†– the amount of time that must elapse after the preforeclosure event – is changing and may be dependent on the LTV ratio for the transaction and whether extenuating circumstances contributed to the borrower’s financial hardship (for example, loss of employment). In addition, Fannie Mae is updating the requirements for determining that borrowers have re-established their credit after a significant derogatory credit event.
Note: The terms “short sale†and “preforeclosure sale†are both referenced in this Announcement and have the same meaning – the sale of a property in lieu of a foreclosure, resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.
Lake Arrowhead Short Sale waiting period
If you have successfully completed a Lake Arrowhead Short Sale or short sale on any real estate you may be eligible to refinance or purchase real estate in Lake Arrowhead within just two years. For a foreclosure where you let your home go back to the bank the waiting period is four years in most cases. If the defaulted real estate is your primary residence and purchase money most likely the lender has no deficiency rights at all. If it is your second home in Lake Arrowhead and or refinance money you may get the lender to waive their deficiency rights, however it is rare. Most clients that have consulted with their attorneys say it is better to limit the lenders loss by doing a short sale in Lake Arrowhead rather than a foreclosure. The lender will most likely have a more difficult time going for a deficiency judgment.
Buying a Lake Arrowhead Short Sale
Buying a Lake Arrowhead Short Sale or Short Sale real estate in any community can sometimes be difficult. In today’s market lenders are so overwhelmed with defaulted real estate that it takes anywhere from one month to three months for a response to the buyers offer. It is difficult to keep the buyer around to wait on the sellers response, often times they have moved on to purchase other real estate. If the Lake Arrowhead Short Sale listing is a jumbo loan (loan over 417k) it’s not insured by Fannie Mae or Freddie Mac and the banks investor on the other side is usually quick to make a deal rather than foreclose on your home. Every bank is different, some will even pre approve a short sale before an offer is in place. Every broker in Lake Arrowhead requires the buyer and seller to sign a Lake Arrowhead Short Sale Addendum. If read carefully the Lake Arrowhead Short Sale Addendum states that the seller may continue the market the property and accept incoming offers. Meaning even though you have an accepted offer from the seller doesn’t mean you have the deal. Any other offer and terms can be accepted and submitted to the lender. My advice would be to counter that paragraph out of the contract to make the seller and bank committed to only your offer. List of Lake Arrowhead Real Estate
Other Short Sale Blogs
How long does Fannie Mae take to approve a short sale?
My loan servicer (Wells Fargo) is about to approve my short sale and forward to the investor, Fannie Mae. We have met the “net” they were looking for with a bit lower commissions and contributions from me (the seller). …
Publish Date: 10/28/2010 17:08
http://www.loansafe.org/forum/short-sale-outpost/34651-how-long-does-fannie-mae-take-approve-short-sale.html
Latest Short Sale updates for Fannie Mae & Freddie Mac
This week’s Preforeclosure “Tip of the Week†from PreforeclosureDailyGrind.com’s Bob Lachance and Chris Bowes discuss the latest updates from the almighty Fannie Mae and Freddie Mac. This video goes over how long it will take them to process your sho…
Seller documents required for Lake Arrowhead Short Sale
If you are a Lake Arrowhead short sale seller in foreclosure trying to succeed in selling your real estate short be prepared to give the bank a full short sale package. The following documents are required to do a short sale in Lake Arrowhead or any other area: Listing Agreement (usually they want to see you have had it on the market at least 60 days), past two years taxes, most recent pay stubs and bank statements, hardship letter, financial monthly payments, and most importantly the purchase offer. The bank will also pull your credit with or without your approval. If you have any questions about Lake Arrowhead Short sale or short sales throughout Southern California feel free to contact us as we have plenty of experience.
