Eligibility and Guideline Changes Could Affect Your Denver Short Sale


A short sale is the sale of a property in which the proceeds from the sale fail to cover the amount of the mortgage.  Denver short sales are still somewhat commonplace despite the recent uptick in the housing market. The advantage of a short sale is that it can preserve the credit of the seller by avoiding foreclosure. Unfortunately, the short sale process is difficult to navigate and not all Denver realtors understand the short sale process which can be very complex. 


The good news is that new FNMA and FMAC guidelines go into effect in November, 2012, which may help your situation. Here’s a quick rundown on some of the changes:


Eligibility: The Federal Finance House Authority, in consultation with Fannie Mae and Freddie Mac, has loosened the eligibility requirements. For instance, military families who receive Permanent Change of Station orders will now be eligible. 


Streamlined DocumentationFannie Mae is reducing the documentation, and in some cases eliminating it, in cases of a borrower hardship of more than 90 days delinquent and with a credit score lower than 620.


Standard Payments: Subordinate-lien payments will be limited to $6,000, eliminating the negotiation for higher payments. Standardizing the transaction may speed up the short sale process on Denver homes.


Servicer Approval: Servicers of short sales no longer need individual approval from Fannie Mae so long as the short sales conform to the requirements. Homeowners with hardships, such as divorce, illness or death of a borrower or employment transfer, may be approved as long as the loan is not yet in default. Servicers will also be required to complete short sale evaluations in 60 days. 


Help Desk: A Short Sale Assistance Desk is already available to help real estate professionals in targets markets. This is an escalation procedure which may help facilitate and streamline the short sale process.


The streamlined process of short sales will assist homeowners most in need. It also enables lenders to more quickly and easily qualify certain homeowners for a short sale if they are current on their mortgage payments but dealing with hardships. 


If you’re considering selling your Denver home as a short sale, I can help. Give me a call today at 303-525-8721 or email me at mhuffman@cherrycreekpropertiesllc.com .  My goal is to provide you with a great real estate transaction whether you are buying a home in Denver or selling a home in Denver or the surrounding area. I have extensive knowledge of the Denver real estate market.

Bow Mar Real Estate Denver Realtor