Beginning June 15, real estate agents working
with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect
to receive a decision on a short sale offer within 30-60 days.
If more than 30 days are needed, servicers must provide the
borrower with weekly status updates and come to a decision no later than 60
days from the date the BRP or
offer was received.
According to the GSEs, this 30-day add-on will provide some
leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All
decisions must be made within 60 days.
In the event a servicer makes a counteroffer, the borrower is
expected to respond within five business days. The servicer must then respond
within 10 business days of receiving the borrower’s response.
The GSEs plan to use the new short sale timelines to evaluate
servicer compliance with the Servicing Alignment Initiative.
Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline
requirements for short sales “set minimum standards and provide clear
expectations regarding these important foreclosure alternatives.”
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