- BEFORE an offer is reviewed, a homeowner must be deemed eligible to participate in Fannie Mae's short sale program
- Borrowers who are 90 days or more delinquent AND who have a FICO score of less than 620 are automatically deemed eligible and do not have to supply hardship documents
- Borrowers who do not meet the above requirements must document a demonstrated hardship by supplying the necessary financials and Fannie Mae forms
- Borrowers who are not behind on their payments can also be evaluated for eligibility if default is imminent
It is important to note that even if we have an offer to submit, Fannie Mae requires that the borrower go through the eligibility process before the offer is reviewed. Yes, the eligibility process can be long and frustrating, gathering the necessary documents, verifying financials, etc. And yes, going through this step seems to delay having the offer reviewed, but it's the first step towards having the offer reviewed so we ask that all parties have patience while we work to complete step one!
PS: So far these new policies have not resulted in any changes regarding submitting the financial info to the Short Sale lender. We can only hope that something Fannie Mae creates will actually result in streamlining of the process.
PSS: Tucker's Tips will take a short break next week. Enjoy the summer.
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.
William D. Tucker, III