Expanded Tool Will Help Prevent Foreclosures and Stabilize Neighborhoods
In a recent press release Fannie Mae introduced an expanded HomePath for Short Sales tool to resolve short sale challenges. The tool, a new short sale escalation process, is open to any real estate professional working on a short sale involving a Fannie Mae-owned loan. Once a case is escalated, Fannie Mae will directly engage with the agent or servicer to address challenges such as valuation disputes, delays by servicers or uncooperative subordinate lien holders. Agents can also use the new escalation process to receive a recommended list price from Fannie Mae prior to listing the property for sale. Any time a short sale realtor can provide a pre-approved or suggested price from the investor it makes for a much better short sale transaction.
Fannie Mae vice president for real estate sales, Jay Ryan, said “Our goal is to prevent foreclosures and help stabilize communities. By giving agents a straightforward, transparent way to escalate short sale issues to Fannie Mae, we will close more sales, prevent foreclosures and help neighborhoods continue to recover. Getting short sales done benefits everyone involved and we’re committed to doing our part.”
Most short sale realtors will agree that this will be an invaluable tool in those occasional cases when we reach an impasse with a lender or servicer that is not being reasonable or following the guidelines that Fannie Mae has established for all of us. Real estate professionals can visit www.homepathforshortsales.com/hpshortsaleinquiry.html to escalate an issue on a particular short sale with Fannie Mae directly.
Fannie Mae also secured delegation agreements with mortgage insurers to streamline the short sale approval process last fall. In the past mortgage insurance companies were among the biggest deal killers for short sales because they had nothing to lose and would make totally unreasonable demands of the struggling homeowner. These and other recent changes should allow the short sale process to move forward more rapidly with a more favorable outcome and short sale experience for everyone involved.