Jul 17, 2013

Tip 26-2013: Fannie Mae Short Sale Webinar Info Part 2

Tucker's Tip 24-2013 discussed what Fannie Mae reinforced as the important first step of their revised short sale process: "Determining homeowner eligibility." This week's tip will highlight some of the changes Fannie Mae has initiated for the subsequent steps of their process.  

In the past, if you wanted the lender's value of a short sale property, you would have to wait until there was first a sales contract. Then, the wait would continue until the servicer ordered a BPO or appraisal. Now you can now allegedly obtain a recommended list price directly from Fannie Mae.

According to Jane Severn, Marketing Director in the Real Estate Asset Management Group at Fannie Mae, you can request a recommended list price before the property is listed and even while the borrower is being evaluated for eligibility. Fannie Mae will order a BPO and/or an appraisal and use comparable listings and other data to set a recommended list price. (This is a new policy and TGB is not certain how this will work or how quickly Fannie Mae will set a recommended list price). 

Perhaps the greatest change in Fannie Mae's procedures is that Fannie Mae now requests that once a property receives an offer, you can simultaneously submit that offer to the servicer and directly to Fannie Mae. Fannie Mae is using this process as a tool to keep the short sale on track by attempting to cut down on timelines. Severn quoted instances when Fannie Mae's escalation department received value disputes, but Fannie Mae didn't even know that the property in question was listed.  

It is clear that there is sometimes a lack of communication between servicers and investors. We're hoping that these new changes will cut down on time between submission of the short sale contract and approval. 

P.S. As we learn of new trends in the Short Sale World and whether or not these Fannie Mae changes are successful, we will keep you all updated! (TGB is already testing these new policies with several of our current short sales). 
   
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.


William D. Tucker, III
Tucker Griffin Barnes
Charlottesville, VA
434-973-7474
Inquire@TGBLaw.com
www.TGBLaw.com

No comments:

Post a Comment