Will Frannie’s new program increase the rate of short sales in California?
Yes. (63%, 86 Votes)
No. (37%, 51 Votes)
Total Voters: 137
Fannie MaeA government-sponsored entity operating in the secondary mortgage market. and Freddie Mac (collectively FrannieA collective term for Fannie Mae and Freddie Mac.) are requiring mortgage servicers to complete short sales under one uniform approval process, called the Standard Short Sale/HAFAA government program aimed at assisting homeowners receive a loan modification in lieu of foreclosure. II. Frannie expects this streamlined process will make short sales uniform, faster, easier and clearer. Under this new program:
homeowners current on their mortgage payments will be eligible for a short sale if they meet other hardship criteria;
Frannie will wave deficiency collection in exchange for a “cash contribution” from borrowers meeting specific financial guidelines (contribution not to exceed 20% of the borrower’s reserve funds or other assets);
members of the military who are being relocated will be automatically eligible for the program; and
Frannie will offer up to $6,000 to second lien holders to speed the short sale.
End of free preview
The rest of this content is only available to first tuesday Members. If you are a current first tuesday Member, please login above.
Not a current Member? For only $29.50, our Annual Membership includes access to: