Fannie Mae and Freddie Mac announced changes to their servicing requirements for their short sales. Please be aware of the following key changes for all parties involved in a short sale. These changes apply to all Fannie Mae and Freddie Mac short sales, with an offer and without an offer.
Title Transfer requirement change:
- The buyer is prohibited from selling the property for any sales price for a period of 30 days from the date of the deed.
- After a 30 day period, and until 90 days from the date of the deed, the buyer is further prohibited from selling the property for a sales price greater than 120 percent of the short sale price.
Note: The above restrictions will run with the land and are not personal to the grantee.
- The borrower may be entitled to an incentive payment of $3,000 from Fannie Mae / Freddie Mac to assist with relocation expenses following successful completion of a short sale unless:
- The borrower is required to contribute funds or execute a promissory note.
- The borrower has Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other government relocation assistance.
- The servicer has knowledge that the borrower is receiving relocation assistance from another source other than the servicer.
Note: If the borrower receives relocation assistance from a source other than Fannie Mae, Freddie Mac, or the servicer, the difference in the relocation assistance amount up to the $3,000 incentive maximum may be provided. If the borrower will receive relocation assistance from a source other than Fannie Mae, Freddie Mac, or the servicer and the amount is equal to or greater than $3,000, no relocation incentive will be provided.
SOURCE - Caiif Assoc of Realtors Newsline.