Buying a home is one of the most exciting and scary times in a person’s life but it is also very complicated. There are a number of parties to this transaction and they read like a movie credit in order of appearance:
Title Insurance Underwriter
Closing Attorney and or Settlement Agent
Government agencies owed unpaid taxes or levees
Former spouses who still have interest in the property being sold
Property and Casualty Underwriter
Mortgagee (if the property being sold is mortgaged)
And the list one son and on. Not only do the parties to the sale (the buyers and sellers) have to agree to the terms of the sale but to some extent so do the third parties involved. Any one of these players can delay or cause the sale to fail. Further complicating this delicate ballet of timing and process is the introduction of yet another party; The Investors who are owed more than the property is being sold for also known as The Short Sale.
Even though the Great Recession has been with us for more than 4 years, and Short Sales have been around for years, nobody has really been able to find a way to deal with them very efficiently. Fannie Mae is attempting to change that with the launch of the new tool they call The HomePath for Short Sales tool. The tools is divided into three categories:
- Borrowers Considering a Short Sale
- Real Estate Professionals Involved in a Short Sale
- How Can Real Estate Professionals Escalate a Short Sale Issue to Fannie Mae?
The new Short Sale Tool very clearly spells out the respective Agents duties and responsibilities as well as a plethora of answers to frequently asked questions. Only time will tell if this tool will actually alleviate any of the complaints both buyers and sellers have associated with Short Sale; Chief among them are the incessant request for documents from sellers, last minute renegotiation of sales prices and otherwise dismal communication by Fannie Mae.
For now at least Fannie Mae is making an effort, even if it is about five years too late. Is this just window dressing to cover up Fannie Mae’s inability to respond to their customers or do you think Fannie Mae is sincerely trying to help underwater Sellers to sell the homes quicker so they can move on with their lives?
Have you had any recent experience with The HomePath for Short Sales tool? How would you describe it?
I’d like to know what you think, leave your comments below and I will personally respond where appropriate.
- Whats is a Short-Sale (raleighmortgageguy.com)
5 Reasons Your Short Sales Will NEVER Close (raleighmortgageguy.com)
Bank of America Accepted Short Sale – but they say you still owe (raleighmortgageguy.com)
- Making Home Affordable Explained | MortgageRefinanceRates.org (mortgagerefinancerates.org)