FM Commentary

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FM Commentary

Speeding Up Short Sales: A Good Alternative for Families Facing Foreclosure

Tim McCallumFannie Mae’s goal is to prevent foreclosures and help stabilize communities. We know that short sales can be a good alternative for borrowers who are facing foreclosure, unable to afford their home, and owe more on their mortgage than the house is worth.

That’s why we have expanded our HomePath® for Short Sales website by adding a new tool that will help real estate professionals escalate cases and resolve challenges standing in the way of a short sale. Real estate professionals now have a straightforward and transparent way to communicate with Fannie Mae when they encounter an impediment. As a result, we expect to close more sales, prevent foreclosures, and help neighborhoods continue to recover.

Real estate professionals across the country have already begun using the tool and they are reporting favorable results. Some have seen their issues resolved within as little as a day. Challenges which we have been able to assist with include servicer non-response, expedited valuation review with additional comparables provided by the real estate professional, and sales offer reviews. The important thing is that we have created a resource that is helping to get the job done. And we are spelling success on behalf of the homeowners, who can avoid the threat of foreclosure and make the transition to a new place in which to live.

Agents can escalate an active short sale by contacting Fannie Mae on the HomePath for Short Sales site. Once the case is escalated, Fannie Mae will then directly engage with them to address challenges such as valuation disputes, delays with the offer decision, or uncooperative subordinate lien holders. The new escalation process can also be used to receive a recommended sales price from Fannie Mae before listing the property for sale.

We have made encouraging progress in our efforts to reduce short sale timelines, expand eligibility for short sales, and prohibit servicers from reducing an agent’s commission. We also have secured delegation agreements with mortgage insurers to streamline the short sale approval process. Through the first nine months of 2012, our company completed more than 58,000 short sales. Each one of these sales represents hope and a new beginning for a household or family that has found an alternative to foreclosure. Getting short sales done benefits everyone involved and we are committed to doing our part. With the HomePath for Short Sales escalation tool now available, we are confident we will make further headway on this major front for restoring the housing market and invigorating the nation’s economy.

Visit www.homepathforshortsales.com for more information on Fannie Mae’s short sale process.

Tim McCallum
Director, Real Estate Asset Management - Short Sales

February 20, 2013

The views expressed in these articles reflect the personal views of the authors, and do not necessarily reflect the views or policies of any other person, including Fannie Mae or its Conservator. Any figures or estimates included in an article are solely the responsibility of the author.

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