Fannie Mae Lights a Fire Under Short Sales

June 7, 2010

Residential

Speeding up the Process

Speeding up the Process

Fannie Mae has made an announcement regarding all loans held in their portfolio. The program is set to take place August 1st, 2010. It is called the Fannie Mae’s Home Affordable Foreclosure Alternatives Program or HAFA for short. HAFA is part of HAMP or Home Affordable Modification Program and provides financial incentives to servicers and borrowers who utilize a short sale or a deed-in-lieu of foreclosure to avoid a foreclosure on an eligible loan under HAMP.

Guidelines Must be Implemented

All servicers must implement Fannie Mae’s HAFA for all conventional mortgage loans that are held in Fannie Mae’s portfolio. Servicers are encouraged to offer HAFA for eligible mortgage loans that are part of a regular servicing option MBS pool or part of a shared-risk special servicing option MBS pool for which the servicer’s shared risk liability has not expired. If a servicer decides to use HAFA for such mortgage loans, the servicer must follow the Treasury’s HAFA Program, obtain any necessary third-party approvals, and comply with the reporting requirements of this Announcement. Fannie Mae is not responsible for any losses or expenses the servicer incurs and will not pay borrower or servicer incentive fees for those mortgage loans which are not considered Fannie Mae HAFA mortgage loans.

August 1st is the Deadline

Servicers are encouraged to adapt their processes to implement these Fannie Mae HAFA policies and procedures immediately; however, servicers are required to implement these policies and procedures no later than August 1, 2010, for borrowers who become eligible for HAFA on or after that date.

Hopefully this new policy will speed up the process of short sales and foreclosures. Many buyer’s have walked away from deals due to the lengthy and frustrating process.

We would like to thank Dan DeChiaro for kindly sharing today’s photo via the Creative Commons License.
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About Katie Anderson

Katie Anderson is a respected and successful broker at Sudler Sotheby's Realty as well as a certified appraiser. She specializes in representing clients who purchase and sell condominiums, town homes, single-family homes and income property in the Chicago land area. In her small amount time in the real estate game (she became an agent in 2003) she has assisted in excess of 400 deals and over $200 million in sales and continues to use her skills as a certified appraiser. Katie resides in Chicago's Bucktown neighborhood with her loving husband and 4-year-old-daughter, where she spends much of her spare time with her family and friends. You can contact her at katie@thechicago77.com or at andersonbraack.com

View all posts by Katie Anderson

4 Responses to “Fannie Mae Lights a Fire Under Short Sales”

  1. ellen orgera Says:

    I am trying to do a short sale with Chase.. heard they are hard to deal with and that indeed has been my experience..

    how long can I expect it to take.. My buyer has signed a contract in april still waiting to hear.. also is there an incentive of 1500.00 ifso how does that apply?Afriad this buyer would walk away…

    supra9497@aol.com

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