|3/1/2013 - Short Sale Approval Before Default|
|Banks are increasingly willing to approve short sales before borrowers go into foreclosure for Fannie Mae and Freddie Mac backed mortgages.|
The shift by banks is a reaction to federal rules that went into effect November 1st, 2012 allowing homeowners to qualify for a short sale even if they are current on payments. But The federal rule changes only affect loans backed by Fannie Mae and Freddie Mac.
Under the November changes, borrowers who are current on their mortgage but suffer a hardship such as a death, divorce, or a job change requiring them to move more than 50 miles from their home can be qualified for a short sale by their loan servicers without additional approval from Fannie or Freddie.
Source: Kimberly Miller - Palm Beach Post Staff Writer
Peter Schulz - Editor - Email TCM