JUNE 15th, 2012—That is the day that is supposed to change the distressed sales market altogether. Fannie Mae and Freddie Mac loans are to have a decision within the first 30-60 days. If more than the initial 30 days are needed to process a loan, the potential borrower will receive weekly updates and the decision will be reached by the 60 day mark.
This more regimented time-line will benefit both the servicers and the borrowers by increasing the overall accountability of the approval process. Servicers may counteroffer and expect a reply within five days. Borrowers and servicers alike will both know where in the process the transaction is and the timeline will serve as a tool of evaluation for the distressed sales system as a whole.
Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”
What do you think about this change to come?