Each and every week, there are things going on that impact the short sale business. Sometimes there are big changes to federal and state policies that impact short sale processing and the distressed property world. Other weeks, there is news about government programs for distressed borrowers.
Read below to learn about some of the interesting stuff that went on this week in the distressed property arena:
50% of Loan Mods Recur in 3 Years According to a statistical report by Barclays, 50% of loan mods end up in a new application in less than three years. Read the article to learn more. The bottom line is that underwater borrowers desperate to stay in their homes but really cannot afford to do so should not be given a loan modification. They’ll probably end up in short sale down the road anyhow.
Fannie Mae Short Sale Escalation Tool Since everyone seems to be complaining about Fannie Mae short sales (see link below), it’s a good thing that Fannie Mae announced this new tool for short sale listing agents. We used it recently and got one tough Nationstar short sale through the system. Winner, winner, chicken dinner!
Fannie Mae Accused of Forcing Underwater Borrowers into Foreclosure It’s pretty much a huge cluster$%^&, and it’s hard to believe. The people of the United States (us and our Government) own the largest stake in Fannie Mae, yet Fannie Mae might be forcing those very same folks into foreclosure. What say you?
There’s lots going on in the distressed property arena. And, if you are actively working with ‘distressed’ borrowers, it’s important to keep up with all of the changes in the industry. Sometimes that’s hard, which is why we’ve provided you with a weekly recap right here.