If you are behind in your mortgage payments and/or facing foreclosure and need to sell fast — but still have a large loan balance — we are often able to help by negotiating with your bank to do a “short sale”, where we are able to save the house from foreclosure by getting the bank to allow the sale for less than what you owe.
We are experts in walking sellers through this process, which can sometimes be rather long. Fortunately, for loans guaranteed by Fannie Mae or Freddie Mac, there are several new guidelines going into effect this fall.
These new guidelines will make the process easier, and may even make a short sale available to you where it was not previously.
Here is a summary of the new changes that will be taking effect:’
– Borrowers who are 90+ days delinquent and have a credit score below 620 will no longer be required to provide documentation of their hardship. This saves you from writing a hardship letter, which is typically the piece of the short sale that takes you the seller the longest to do (we handle most of the other details).
– Fannie and Freddie will also waive their right to pursue deficiency judgments, which is where they may pursue a judgment against you for the amount of the short sale (i.e., difference between sales price and mortgage balance). Borrowers with sufficient income or assets can make cash contributions or sign promissory notes instead.
– To prevent second mortgage holders from holding up the short sale process, Fannie and Freddie will offer them up to $6,000.
– The new guidelines will also your loan servicer (typically the company you write your checks to, who may not actually “own” your mortgage) to approve a short sale for borrowers who are not in default but face certain hardships including the death of a borrower or co-borrower, divorce or separation, illness or disability or a transfer for work.
– All loan servicers will have the authority to approve and complete short sales that follow the requirements without first going to Fannie and Freddie for approval.
– Military personnel with Permanent Change of Station (PCS) orders who are required to relocate will automatically be eligible for for short sales even if they are current on payments. They also won’t be obligated to contribute funds to pay for the remaining “deficiency.”
Call us right away at 205-390-1050 (or see us at www.WeBuyBham.com) if you need help in avoiding foreclosure and think a short sale may be right for you. We buy houses in the Birmingham area as-is, and can help save you from foreclosure.