Fannie, Freddie Rules Hasten Short Sales

It will be easier to sell homes in short sales under new guidelines now in effect.

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In a short sale, a home is sold for less than the mortgage amount owed, with the lender's permission. Short sales have been notoriously slow and complex. The new rules are designed to simplify the process and speed up short sales for loans owned or guaranteed by Fannie Mae and Freddie Mac.

Sellers Won't Have to be Delinquent

A borrower who can prove a hardship that requires a home sale may qualify for a short sale, even if current on the house payments. These hardships include:

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  • The death of an owner.
  • Divorce.
  • Disability.
  • The need to relocate more than 50 miles for a job transfer or a new job.


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