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http://www.dsnews.com/articles/print-view/fannie-and-freddie-set-timeline-requirements-for-short-sales-2012-04-17

Fannie and Freddie Set Timeline Requirements for Short Sales
By: Carrie Bay 04/17/2012

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.

The GSEs issued new guidelines Tuesday that fall under the Servicing
Alignment Initiative rolled out last fall and aim to bring greater
transparency to the short sale process and expedite decisions related
to
these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home
retention is no longer an option, but it keeps homes occupied and helps
to maintain stable communities, according to the Federal Housing
Finance
Agency (FHFA).

Addressing real estate practitioners’ No. 1 complaint about short
sales, FHFA directed Fannie Mae and Freddie Mac to establish a new
uniform set of minimum response times that servicers must follow in
order to facilitate more efficient short sale transactions.

The GSEs’ new short sale timelines require servicers to make a
decision within 30 days of receiving either an offer on a property
under
the companies’ traditional short sale programs or a completed Borrower
Response Package (BRP) requesting short sale consideration, whether
it’s through the federal government’s Home Affordable Foreclosure
Alternative (HAFA) program or a GSE program.

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.”

GSE servicers must comply with the new minimum communication time
frames for all short sale evaluations conducted on or after June 15,
2012, although servicers are encouraged to begin implementing the new
requirements sooner.

“I applaud Fannie and Freddie for finally coming out with real
guidance with real world timelines for their servicers,” commented
Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc.,
which
specializes in short sales. “There is no question that this will help
short sales and the market as a whole.”

Last year Freddie Mac completed 45,623 short sales, a 140 percent
increase since 2009. Fannie Mae’s short sale completions shot up by
101 percent over the same period, totaling around 79,800 in 2011.

. . .

Give me a call if you need additional information.
- Robin
www.realtyrobin.com

Recently I’ve had a number of buyers look at homes where the items that are updated are not all that apparent- namely the utilities and systems of a home.

When buying a home it’s important to consider the added value of having new or recently updated utilities and systems.  Why?  They’re expensive for one thing.  Secondly you get to avoid the many stories of someone having to continually deal with problems in a home.

While it’s important to buy a house that looks and feels nice, the added value of updated utilities can be substantial – and are worth paying more for.  It’s a lot easier to pay a little more for a home rather than having to spend thousands of dollars periodically once moving in.  Plus, the higher purchase price can all be given as a home loan- your house projects or piecemeal fixing of systems after moving in can’t.

And for sellers- be smart about what you update.  I’m a big fan of adding insulation and energy efficient windows because it brings down your utility bills.  But oftentimes buyers don’t fully see that added value.  So keep that in mind when you decide what to do or not do.  And save your old utility bills so you can show in hard dollars how you’ve added value to the home.

Hope you have a happy and safe holiday weekend!  For info on the fireworks display in Seattle http://www.familyfourth.org

 http://ow.ly/59RFI

Will rates go back down?

Experts say ‘unlikely’ unless 1) the Fed’s recent round of Quantitative Easing doesn’t meet its mission of creating inflation, boosting Stock prices, lowering unemployment – a long shot or 2) if the financial problems in Europe that we saw in 2010 worsen significantly in 2011, then this could drive investors into the safe haven of the U.S. Bond market, which would help Bond prices but probably only modestly.

Realistically, the bottom line is that rates may see a brief and fleeting improvement here or there, but many experts believe that the overall trend will continue – meaning home loan rates will creep up as we progress through 2011.

The good news is that home loan rates are still extremely attractive and are still near historic lows for now. That may not be the case in the latter part of 2011. And higher rates may mean a bank/mortgage broker may offer to lend you less money than when rates were lower.

In July of 2010, interest rates hit an all-time low!…exciting home-buyers with rates as low as 4.25% rate for 30-year fixed-rate mortgages. While the rates have fluxuated a bit recently, rates are still at a level that is basically Free Money. Here in Portland, Oregon, this translates into a great opportunity to finally come home to your dream house in the highly desirable close-in eastside neighborhoods such as Laurelhurst, Irvington, and the Hawthorne area. Likewise, first-time homebuyers (and investors) are finding exceptional value in the oversized lots and charming bungalos in the neighborhoods of Cully, Rose City, and Woodstock. Get in touch with me to find out more about taking advantage of these great rates, or visiti my website to learn more about buying a home in Portland, Oregon.