The short-sale process is expected to get shorter starting June 15. New guidelines issued under the Federal Housing Finance Agency will require Fannie Mae and Freddie Mac to give home buyers of short sales notice of their final decision within 60 days. The new guidelines also will require the mortgage giants to respond to initial short-sale requests within 30 days of receiving an offer from a potential buyer.
The speedier process is expected to be a boost to the housing market, Michael McHugh, president of the Empire State Mortgage Bankers Association, told the New York Times. Home buyers and sellers often have to wait months before they receive a decision from a lender on an offer for a short sale. Some deals fall apart just from the long wait alone.
Short sales have been increasing in recent months, as many lenders find them more appealing than foreclosures, which can be much more costly and take longer to remove from their books.
Short sales now outpace foreclosure sales in many parts of the country. Short sales represent more than 14 percent of existing-home sales, according to CoreLogic housing data from March, the most recent month available.
McHugh says that a faster short-sale process may be particularly helpful in speeding the recovery in judicial states, where foreclosures must go through the courts before they are approved. For example, in New York, judicial foreclosures can take a year or longer to be approved. Now short sales may be viewed by defaulting home owners as more of an option in avoiding foreclosure.
Rеаѕоnѕ Buуеrѕ Seek Shоrt Sаlеѕ
Home hunters tурісаllу buу a ѕhоrt ѕаlе for thе same reason that other buуеrѕ рurсhаѕе a hоmе—thеу lіkе the hоmе. Thе fасt thаt it’s a ѕhоrt ѕаlе mіght соmрlісаtе thе іѕѕuе, but thе mоtіvаtіng fасtоr іѕ thе ѕаmе fоr all hоmе buуеrѕ.
A ѕесоndаrу rеаѕоn buyers lіkе short sales іѕ that the рrісе mаkеѕ it wоrth the hаѕѕlе. Thеѕе buуеrѕ аrе ѕееkіng a gооd dеаl, аnd thеrе аrе sometimes bаrgаіnѕ tо bе found ѕhорріng for a ѕhоrt ѕаlе. However, not аll оf thоѕе ѕаlе рrісеѕ are rеаl.
“There should be a significant improvement in the turnaround,” McHugh said regarding housing markets with judicial foreclosure processes.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2012/05/29/short-sale-process-expected-speed-up-in-june
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