The Government Sponsored Enterprises (GSE’s) issued new guidelines April 15, 2012, aimed at making the short sale process more transparent and expediting decisions made by lenders to approve them. The Federal Housing Finance Agency (FHFA) maintains that short sales are an extremely important alternative to foreclosure because it keeps homes occupied and helps to maintain stable communities.
In response to the biggest complaints that they take too long and are terribly inefficient, the FHFA established new minimum response times that loan services must follow to facilitate more efficient short sale transactions. The GSE’s new parameters now require loan servicers to make a decision within 30 days of receiving an offer on a property. If the servicer needs more than 30 days to make a decision, the servicer must provide the borrower with weekly status updates and come to a decision no later than 60 days after the offer was received. All decisions must be made within 60 days. GSE loan servicers must comply with the new requirements for all short sale considerations conducted on or after June 15, 2012.
To achieve the best outcome available to you, it is of critical importance to be sure that the lawyer handling the short sale on your behalf works aggressively, diligently and closely with the loan servicer, is responsive to all of their communications and has the qualifications, knowledge and experience necessary to negotiate and respond to their demands in a manner that will get you the best possible outcome.
If you or someone you know is facing the possibility of foreclosure, please understand that it is not a good idea to go it alone. Seek the advice of a skilled and experienced lawyer to help you stop foreclosure or avoid foreclosure. There is no reason not to. YOU WILL NOT HAVE TO GO TO COURT. There is no reason to be afraid or embarrassed to seek help. In Florida, the laws are designed to help you and to give you rights. The sooner you seek the advice of a lawyer, the better the lawyer will be able to help you.
There are a number of alternatives to foreclosure – short sale, loan modification and deed in lieu, just to name a few. For many people, a combination of a short sale or deed in lieu and foreclosure defense strategy will increase the chances of getting a good result. A good lawyer should provide you with the gentle guidance and counsel that you need to put you in a much better position than if you ignore the problem and do nothing.