Beginning Nov. 1, the GSEs, Freddie Mac and Fannie Mae, will implement new short sale guidelines, designed to make the approval process easier for eligible borrowers. This is part of the Servicing Alignment Initiative that results in a decrease in documentation requirements. There are a number of additional changes included, all designed to ease the process.
The GSEs will waive the right to pursue deficiency judgments. Second lien holders will no longer hold up the short sale process thanks to an offer up to $6,000 from the GSEs. All servicers will now have the ability to approve and complete the short sale without involving the GSEs for approval. There is also a provision for military members include in this change.
Read the full article here.