RECORD Short Sales Reported
Daily Real Estate News is reporting that short sales reached a record number in the 3rd quarter of 2012 for Fannie and Freddie loans. They were up 23 per cent totaling 37,966.
Earlier in 2012 they had implemented new procedures geared to speed the process and apparently it is working. The foreclosure inventory, also called REO’s, dropped as well.
For homeowners not sure what to do this is good news. A short sale is a much preferred way to exit an up-side down mortgage that makes no sense keeping. Of course you still must qualify for a hardship but even those guidelines are relaxing.
They recently announced that if you have a FICO score under 620 and have been delinquent for over 90 days on your mortgage then you automatically qualify for a hardship. This actually is good news but does not apply to all loans but at least it a big step in the right direction.
If you are thinking a short sale might be the best course of action then I would suggest you don’t wait. The new tax law has been extended one year but you must CONCLUDE your short sale by then and some short sales take a long time.
Foreclosure timelines are even greater so if you really need the tax break do NOT rely on your lender to conclude your foreclosure by the end of this year. The banks can and do take their time to fit their needs. You should at least be fully informed on your options and know your rights.
If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at firstname.lastname@example.org or just visit my website www.upsidedownca.com.
California Attorney and
licensed Real Estate Broker