Short Sale Update

Short sale rules are changing all the time.  Here are some new tidbits that may be of interest to you:

1)  Effective June 2012, lenders must provide a response within 30 days of receiving a short sale offer if the loan is backed by Freddie Mac or Fannie Mae, or is subject to the Home Affordable Foreclosure Alternatives Act (HAFA).  Also, those lenders must make a final decision within 60 days.

2)  HAFA is no longer limited to owner-occupied homes.  Certain investment properties may qualify under HAFA as well.

3)  Homeowners who are in the military, and need to move quickly as a result of receiving new orders, can qualify for short sale assistance automatically if their loans are backed by Fannie Mae or Freddie Mac, and if they owe more than their home is worth.