How to Do a Fannie Mae HAFA Short Sale
Brief History of Fannie Mae
Fannie Mae and Freddie Mac are two mortgage investors that own almost three out of four mortgages in the United States. Fannie Mae was established by the President Franklin D. Roosevelt and Congress to in 1938 to purchase the mortgages in the secondary market to its public offering in 1968. Fannie Mae soared to record profits before the great mortgage meltdown of 2007. Fannie Mae was placed into government conservatorship in September 2008, under the Federal Housing Finance Agency.
What is a Fannie Mae short sale?
Fannie Mae adds additional layer of approval to the short sale process. Normally, the seller presents a hardship and the home is upside-down to qualify for a short sale. The seller along other qualifying documents is sent to the seller’s bank once the seller has received an offer to buy the short sale.
Not only will the servicing bank process the short sale, but the package will later be sent to Fannie Mae for approval if the bank is merely servicing the loan because the loan has been sold to Fannie Mae. It means that even the seller’s bank has approved the short sale, the seller will still need to get approval from Fannie Mae providing the services does not have delegated authority. Fannie Mae short sales take longer to close due to the extra layer of approval and required documentation.
Will Fannie Mae Postpone a Trustee’s Sale if a Short Sale Offer is pending?
Unluckily, the answer seems to be no. If the notice of default has been filed, Fannie Mae has announced that “it will not stop the foreclosure process while it is considering a short sale”. If the short sale cannot be finalized prior to the auction date, Fannie Mae will foreclose even if the reason the short sale is not approved is due to delays at Fannie Mae.
Isn’t this exasperating news? On the bright side, after November 1st, 2012, the government has stopped pushing sellers who would otherwise stay current on their mortgage payments into foreclosure. Unfortunately, once the foreclosure process has begun, the government will take away a borrower’s home if the short sale can’t close before the sale date.
Sellers closing short sale after June 30th, 2012 Fannie Mae will allow the seller to remain current if the seller is a member of the military with Permanent Change Orders. New guidelines issued by the FHFA, effective November 1, 2012, allow sellers with a hardship to remain current and still do a Fannie Mae short sale.
Can a Seller Stay Current and Do a Fannie Mae Short Sale?
The answer appears to be yes. Fannie Mae had told again and again that Fannie Mae will not issue short sale approval if the seller is not in default prior to November 1st, 2012.
Why Hire MyShortSalesAgent to do a Fannie Mae Short sale?
At MyShortSalesAgent we specialize in dealing with all types of short sale. We have a great experience dealing with all kinds to banks and lenders. We have helped a huge number of short seller doing a Fannie Mae short sale. We have been working with Fannie Mae for a long time and have known all the tips and tricks that can close the short sale. Working with us means making your short sale successful. We work for you in a very smart way that brings fruits.