By now almost everyone has probably heard a story about (or experienced themselves) the laborious, time-consuming and mind numbing process of trying to buy (or sell) a home on a short sale or, in other words, for less than is owed on the home with the lenders blessing. Unfortunately the lenders blessing, in many cases, has taken many weeks or even many months to get causing many buyers and sellers to give up along the way. Now though, thanks to a recent rule change by Fannie Mae, this process will be improved greatly and happen within 30 days in most instances.
How the new guidelines work:
Under the new guidelines, lenders must acknowledge receipt of the short sale offer within 3 business days, and, if the information submitted is incomplete, notify the seller within five business days. Then, the lender has thirty days to send the seller (borrower) an evaluation notice or, notify them that the offer is still under review at which time the lender must give the borrower weekly updates from that point on and notify Fannie Mae that the lender exceeded the 30 day time limit and, in all cases, complete the evaluation within 60 days.
To see the complete Fannie Mae report on timelines for short sales click here.
For a listing of St Louis short sales, including homes and condos, click here.
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