• Fannie Mae Making great Strides in the Orlando Short Sale Process

  • Fannie Mae is taking the Lead on making short sales move even faster for Orlando homeowners

    It’s amazing to see how far certain lenders have come in the way of helping homeowners to get their Orlando short salesapproved. In the not so distant past, some of the major lenders were hell bent on making the short sale process a nightmare for not only the homeowners but also, the short sale realtors that had to work the entire process. Then even after you’ve submitted the complete package to the lender dotting every i and crossing every t, you would then have to re-submit the entire short sale package several times over either because it needed to be updated or the lender had lost it or claimed to have never received it. I know this may sound absurd to some of you but believe it or not, this used to happen on just about every single file at least once or twice.

    It’s only been in the last year or so that we’ve seen drastic change in the way that lenders handle Orlando short sales in General. There are systems in place such as Equator.com that some lenders use which make short sales move along a lot faster. And with systems like these in place, no longer can negotiators claim to have never received certain documents or that they’ve lost it. It’s as easy as logging into your account and uploading every page that they request. This was just one of the steps which began to streamline the short sale process.

    Since then, there have laws implemented by congress which require lenders to respond within 60 days of a short sale offer being presented, this was Huge! Even bigger, was when Lenders started giving homeowners large “Cash for Keys” incentives to complete short sales. Not only were homeowners able to get their debt forgiven, but they were able to receive enough cash at closing to start over in a new life.

    Most recently, Fannie has come out with new guidelines for loan servicers to follow.  The new guidelines are a part of the Federal Housing Finance Agency’s Servicing Alignment Initiative. The idea is to prevent more foreclosures and  help neighborhoods to stabilize.


    Fannie Mae’s new guideline changes

    • Hardships. Servicers will now be permitted to approve a short sale for borrowers who have certain kinds of  hardships but are still current on their loan. Also, in order to reduce paperwork, no documentation of hardship will be required for borrowers who are 90 days or more delinquent and have a credit score lower than 620.

    • 2nd-lien payments limited to $6,000. Before, 2nd lien holders often attempted to negotiate higher payments. The loan servicer will be able to offer the maximum payment of $6,000 in order to facilitate the transaction. By setting a standard payout amount and a limit for every transaction, Fannie Mae is removing the guess work in order to accelerate the short sale process.

    • Servicers will have more authority to approve and complete short sales. All servicers will have the authority to approve and complete short sales that conform to the requirements without receiving individual approval from Fannie Mae. Sometimes this part of the process added several months to short sale negotiations.


    Jenny Zamora Lic RE Broker, Orlando