It was recently announced that the Federal Housing Finance Agency has been working with Fannie Mae and Freddie Mac to issue new guidelines that expand eligibility criteria and streamline the short sale process.
No one wants to suffer hardships that affect their home-ownership. No one wants to have to default on their mortgage and start over with ruined credit. A short sale is often the best option for home owners going through financial distress to be able to avoid a foreclosure. These new guidelines are meant to make this process easier for homeowners in Western MA and beyond, to utilize a short sale to avoid foreclosure.
Traditionally (although not always), the owner had to be behind on their mortgage payments to be considered “in hardship” and eligible for a short sale review. The new changes will allow lenders to qualify certain homeowners for a short sale who while they are current on their mortgage payments, yet can show they have specific hardships such as job relocation, increase in housing expenses, unemployment and disability. This change is a great one, because the late mortgage payments have a real impact on the homeowner’s credit.
The National Association of REALTORS worked closely with FHFA and Fannie Mae and Freddie Mac on these new guidelines because REALTORS understand better than most people how important it is to help people in danger of foreclosure. Short sales are good for the family and the economy and are an important factor in working through the remainder of the economic downturn.
If you, or someone you know, are in a condition of financial hardship and concerned about foreclosure, please call me for an appointment. I have helped numerous home owners avoid foreclosure through a short sale and have a team of experts ready to ease the process.
Lesley Lambert, Park Square Realty, 413-575-3611
