REALTORS® applauded the recent Federal Housing Finance Agency (FHFA) announcement that it would streamline the short sale process to speed up the short sale process and help more homeowners avoid foreclosure. The move calls for Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu, and deeds-for-lease.
"C.A.R. applauds the FHFA for taking this important step to streamline the short sale process so that the housing market can begin a full recovery," said C.A.R. President LeFrancis Arnold. "We have long called for similar improvements to help ensure successful short sales and look forward to hearing about additional enhancements to further reform the process."
The FHFA is directing servicers to do the following:
• review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package;
• provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days;
• make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package
By the end of this year Fannie Mae and Freddie Mac will announce additional enhancements that address borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.
Suzanne Yost, president of the Silicon Valley Association of REALTORS®, welcomed the news, as well. She said faster response times will help thousands of distressed homeowners. "Short sale transactions are more complicated than regular transactions and they have taken so much time that many prospective buyers have walked away from short sales," said Yost. "The FHFA's move to streamline the short sale process is a critical step toward a full housing market recovery."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.