Fannie Mae Owns My Mortgage - Will That Make My Short Sale Easier?
In general, I would say yes. I’ve had great success on Fannie Mae files and I would say the negotiation process is very smooth. The rules are established on Fannie Mae short sales, and I find that that helps even when there is a second mortgage -- either they will accept what Fannie Mae will pay or they won’t. The back and forth game is minimized.
However, whether the approval process of a Fannie Mae short sale will be smooth is still dependent on the servicer. I have experienced servicers losing approvals issued by Fannie Mae and by the time they are received they are almost expired. On the other hand, the quickest approval I’ve ever received from Chase Home Mortgage was on a Fannie Mae file -- it was only 44 days until the approval was received. Overall, a sluggish or disorganized servicer can affect how fast files are submitted and how fast approvals are received from Fannie Mae. But, my experience is that Fannie Mae is upholding their part of the bargain on short sale processing.
In fact recently, a short sale seller of mine was offered a “Fannie Mae Streamlined” short sale. Bank of America was the servicer of that loan and the process was handled by REDC. No financial documents were required from my clients and no supporting documents were required from me either.
The entire short sale package consisted of a one page agreement, the purchase contract and the estimated settlement statement showing the net amount Fannie Mae would receive in the short sale. My sellers will also receive a $3000 relocation incentive when they close. This Fannie Mae short sale was approved in 22 days! It has been an amazing short sale and it lets you know how easy it can be when you have cooperation and competence from the servicer and investor.
How do you determine if Fannie Mae or Freddie Mac owns your home loan? Fannie Mae has a website where you can find out instantly, and Freddie Mac has a similar feature on their site as well. Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Orcutt, Nipomo , or Arroyo Grande home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.
Tni LeBlancis an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.If you stop paying your mortgage, you could lose your home and damage your credit rating.
Copyright© 2011 Tni LeBlanc *Fannie Mae Owns My Mortgage - Will That Make My Short Sale Easier?*