Streamlined Short Sales Mean Easier Investment Properties

It just so happens that there have been some significant changes in the market that may either help you sell your home, purchase an investment property, or even both! It’s important to focus and capitalize on today’s real estate market, as well as to learn about the certain pitfalls that can be avoided.

Fannie Mae and Freddie Mac have recently announced that they will be ordering mortgage service companies to streamline short sales. A short sale consists of selling a property short, or less than the amount owed on the property. This process has commonly been known to be exhausting and quite burdensome.

On average, the short sale process has taken between 120-365 days. However, the new orders from Fannie Mae and Freddie Mac state that the lenders must respond to a short sale offer within 30 days. In addition, a final decision on whether an offer has been either accepted or rejected must be reached within 60 days of receipt of the offer.

You might be asking yourself, “So, what does this mean for me?” It could mean that as a homeowner, you can finally start to feel like your home is not going into foreclosure. If you are trying to sell your home as a short sale before moving into foreclosure, you will have more information on a more frequent basis. This is great news for you!

Perhaps you are looking into an investment property. If so, these new orders really help expedite the process. As an investor, the expedited process will also allow you to write offers on short sales without spending 12 months waiting on approval. As investors, this is fantastic news for us! In a current market with such a large shortage of inventory, these new guidelines really provide a great opportunity to purchase the investment property that you have been looking for.