The first two question I always get when meeting with home owners trying to make the decision to short sale are; “How will a short sale affect my credit?” …and “When will I be able to buy another home?” When it comes to when they can buy another home, you should know that Fannie Mae wants homeowners who short sale to own another home sooner rather than later.
Fannie Mae wants short sale borrowers to own again. How I know this? Borrowers who short sale may be considered for any type of loan program without restrictions in as little as 18-24 months from the short sale close date. This is a significantly shorter time-period and less restrictive than their requirements of borrowers who choose the deed in lieu option or allow the property to go to foreclosure.
Those that allow their home to go to foreclosure must wait a minimum of 5-7 years before being considered. Only loans for a primary residence are considered and they will be required to make a sizeable down-payment and must have a strong credit score.
There is an underlying message here: If Fannie Mae will loan to a borrower who took the short sale option faster and with less rules than those that choose foreclosure, then Fannie Mae WANTS HOMEOWNERS TO SHORT SALE. Wouldn’t you read it that way?
The irony is that servicers of Fannie Mae loans are exceedingly slow at processing Fannie Mae short sales. Fannie Mae needs to force servicers to become more efficient in their review of short sales. Their lack of restrictions on servicers is not on the same page as their obvious approval of the short sale option.
[Based upon information released by Fannie Mae in 08]
About Jeremy Smiley
