Southwest Florida Title Insurance & Real Estate Blog -

1,000,000 Short Sales Expected in 2013!

Posted by Jillian Dohack On March 20

Short Sales

At Winged Foot Title, we are always looking to stay educated on Short Sales. We recently watched a Short Sale Superstars webinar that was presented by MAPS Coaches Jacob Swodeck and Knolly Williams.

It was very informative as they discussed the short sale market and the BIG changes that have occurred. Specifically we learned about Fannie Mae and Freddie Mac’s alignment, the Pre-approved hardship/no-doc short sale program launch and the HAFA program changes

I was blown away to learn that there will be an explosion of short sales in 2013. CoreLogic says there are still over 3 million delinquent homeowners that are already 30-60 days late in payments.

There was an estimated 440,000 short sales in 2012 and Daren Blomquist from Realty Trac estimates there will be a record number of 1,000,000 short sales expected in 2013.

We are constantly asked the question if short sales are going away anytime soon and this information gave us some great statistics to relay to those that are curious.

It was great to hear more about the servicing alignment initiative for Fannie Mae and Freddie Mac. This is a FHFA-led effort to establish consistent policies and processes for the servicing of delinquent loans owned or guaranteed by Fannie Mae and Freddie Mac.

The alignment will help the servicer do a better job of resolving delinquencies in a more consistent and fast manner. Their goal is to have a more streamlined process as far as hardship, timelines and documentation needed.

If a seller is 90+ days late and they have less than a 620 FICO score they automatically have a pre-approved hardship. The approved hardship loans will then qualify for the new low doc process.

We were also informed that they will now be delegating the decision on non-delinquent loans when there is death, disability, divorce or distant employment (50+ miles). The servicer can now make the decision.

We also learned about some positive changes for the Making Homes Affordable Program (HAFA). These were put into effect February 2013:

  1. There will be no request for hardship docs if the homeowner is 90+ days late and has less than a 620 FICO score.
  2. No more Treasury HAFA docs required.
  3. Lease back option reaffirmed in the new SD-07 guidelines for HAFA.
  4. New docs will include Short Sale Notice, the ARSS (Acknowledgement of Request for Short Sale and the HAFA Affidavit).
  5. 30 day decision regardless how HAFA was initiated.

Staying educated on new changes and processes for short sales helps us orchestrate the homeowner’s short sale faster and more effectively.

Our eyes and ears will be open to see if these changes are being demonstrated and if so, are they helping us process the Short Sales.

Connect with us on Facebook.com/WingedFootTitle or subscribe to our newsletter to be kept up to date on the latest developments in the short sale industry.

-Jillian

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.