Home | Newsletter | Advertise
loading...

Short Sale Relief in Sight?

  • Apr 30th 2012

by UrbanTurf Staff

Short Sale Relief in Sight?: Figure 1

Homeowners who owe more on their mortgage than the current value of their home have few options, particularly if they must sell the home because they can no longer afford to make the payments. In order to avoid foreclosure, some owners have been able to negotiate a short sale, which means that the lender agrees to accept less than the full amount of the mortgage principal as payment.

There can be a number of complications with this process, not least of which is that after an offer is submitted to the bank, it can take several months for them to get back to the seller with an answer. This timeframe could be drastically shortened come June, however.

Long-time real estate columnist Kenneth Harney wrote this weekend that homeowners with loans backed by Fannie Mae or Freddie Mac could hear back within just 30 days, starting next month:

If your loan is owned or securitized by either of the dominant conventional mortgage market players, Fannie Mae or Freddie Mac, you can expect a response within 30 business days [starting in June], with a final decision no later than 60 days. If you don’t hear back during the first 30 days, the bank will be required to send you weekly updates telling you precisely where the holdups are and when they are likely to be resolved.

See other articles related to: short sales

This article originally published at https://dc.urbanturf.com/articles/blog/short_sale_relief_in_sight/5473.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse