Short sales have a long history of being very difficult to process and close the final sale. The main issue real estate professionals and homeowners have, are third-party middlemen known as mortgage servicers who get paid big bucks to service loans. Over the last several years during the housing crisis, these mortgage servicers were very difficult to deal with.
Both Realtors and homeowners were often being screwed out of successful closings because of mortgage servicer mistakes, and the simple fact these servicers were just over inundated with loan workout cases. Too many files, usually mean lots of mistakes. Mistakes that have cost many people dearly, except the mortgage servicer who seems to make a profit no matter what the outcome.
Now it finally seems like the investors and original mortgage lenders like Fannie Mae are starting to get a clue on how to process these short sales much quicker. The way you do this, is by simply cutting out the cancer in these transactions by eliminating the mortgage servicing middlemen.
Fannie Mae released the good news yesterday, that from this point forward, real estate professionals will be able to negotiate their short sales directly with Fannie Mae.
They will utilize their short sale website portal called “HomePath for Short Sales” that they had created specifically to expedite these transaction in February 2013. According to Fannie Mae, “The HomePath Short Sale Portal is a Fannie Mae resource for listing agents that are working with clients who are considering or pursuing a short sale on a property where Fannie Mae is the first lien holder.”
Fannie Mae has developed this one-stop resource in an effort to help you:
* Request list price guidance directly from Fannie Mae before listing your client’s property;
* Submit an accepted contract for loans serviced by participating mortgage servicers, view the status of your case, and benefit from the 24-hr convenience and transparency of the system; and
* Retrieve required forms and helpful fact sheets for you and your clients.
“This is an important step in continuing to build a strong relationship with the real estate community, which will ultimately contribute to the stabilization of neighborhoods,” said Tim McCallum, Vice President for Short Sales, Fannie Mae. “Allowing real estate professionals to negotiate an offer directly with Fannie Mae is the next step in streamlining the short sale process. Our goal is to provide transparency throughout these transactions and arrive at an agreement that benefits all parties involved.”
According to Fannie Mae, here are some of the requirements:
WHAT’S REQUIRED BEFORE SUBMITTING A CONTRACT?
* Use Fannie Mae’s loan lookup tool to determine if your client’s mortgage is owned by Fannie Mae.
* Obtain permission to represent the homeowner in the short sale by having them sign the Fannie Mae Homeowner Authorization form.
* Verify that your client’s loan is serviced by one of the mortgage servicers listed above.
* Collect financial information and contact the mortgage servicer to determine your client’s eligibility for a short sale.
* Request list price guidance from Fannie Mae using the HomePath Short Sale portal.
* The property must have been listed with an active status on a multiple listing service (MLS) for a minimum of five consecutive calendar days, including one weekend (i.e., Saturday and Sunday) prior to submission of any contract to Fannie Mae.
* Check all contracts for completeness, acknowledge receipt of contract, and assist homeowner in selecting highest and best contract for submittal.
What documents will you need to submit a contract?
Before you submit an accepted contract, have the following documents ready to upload:
* Signed Fannie Mae Homeowner Authorization Form.
* Other supporting documents (HOA Statement and/or Delinquent Tax Statement).
* Estimated HUD-1
* Purchase Contract
* Evidence that the property was listed on the applicable multiple listing service.
Homeowners can learn more about short sales, modifications and other foreclosure alternatives at www.knowyouroptions.com.
Here are some links from Fannie Mae for more information:
- Main website Homepathforshortsales.com
- Homeowner Authorization Form
- Loan Lookup Tool
- Homeowner Information
- Short Sales 101