REALTORS® Applaud FHFA for Expanding Short Sale Eligibility
NAR applauds the Federal Housing Finance Agency (FHFA) for working with Fannie Mae and Freddie Mac to issue new guidelines that expand eligibility criteria and streamline the short sale process.
The new guidelines will offer a more streamlined short sale approach for homeowners most in need, as well as enable lenders to quickly and easily qualify certain homeowners for a short sale who are current on their mortgage payments, yet suffer from specific hardships such as job relocation, increase in housing expenses, unemployment and disability. The FHFA guidelines will also consolidate existing short sales programs into a single uniform process and provide lenders and homeowners clarity on processing a short sale when a foreclosure sale is pending.
“As the leading advocate for homeownership, REALTORS® know that when a family is absolutely unable to keep their home, a short sale is often the best option for homeowners hoping to avoid foreclosure,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “REALTORS® appreciate FHFA’s efforts to increase the number of short sale approvals, which limit the losses incurred by homeowners, lenders, the federal government and taxpayers.”
NAR worked closely with FHFA and Fannie Mae and Freddie Mac to create the new guidelines and has long advocated improving the short sale process to provide more distressed homeowners with alternatives to foreclosure. The rules go into effect Nov. 1 and also allow homeowners with missed mortgage payments and serious financial problems to submit fewer documents to be approved for a short sale. Homeowners will receive speedier approval if they are experiencing a financial hardship such as a lost job, divorce, death in the family or job relocation.