Fannie Mae has updated the requirements regarding the time period in which a borrower can become eligible for a mortgage loan. The requirements favor Short Sales.
The change in the guidelines is very important as Fannie Mae guarantees and owns a large portion of mortgage loans on the secondary market. Fannie Mae and Freddie Mac combined own more than one-half of all loans in the United States.
The following is an brief overview of the Fannie Mae guidelines:
Bankruptcy (All except chapter 13) - 4 year time period from either the dismissal or discharge date of the bankruptcy action.
Bankruptcy/Chapter 13 - 2 years from the discharge date or 4 years from the dismissal date.
Foreclosure - 5-7 years following completion date, minimum 10% down, 680 credit score.
Deed-in-lieu of Foreclosure - 4-7 years following completion date, minimum 10% down.
Preforeclosure/Short Sale - 2 year time period from completion date.
The guideline clearly shows the advantage for a homeowner to short sale their home rather than letting it go to foreclosure.
Source : https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf
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Maria Mastrolonardo is a Realtor Associate with RE/MAX of Naperville and has been assisting home-buyers and home-sellers since 1997. Maria can be reached at (630) 248-6077 or email: mmastrolonardo@remax.net
Servicing the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton, Woodridge or other surrounding areas.
Maria Mastrolonardo is a full time Illinois Realtor specializing in Short Sales, has been helping home-buyers and home-sellers since 1997. Can help you with any questions or information regarding Short Sales for the Western Suburbs of Chicago which includes but not limited to; Naperville, Aurora, Downers Grove, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton and Woodridge.
To reach me call/text at (630) 248-6077 or mmastrolonardo@gmail.com
You can also find me here!
Yesterday I was at my networking meeting when a fellow member came in that seemed to be a little frazzled. She later shared with me her concern of not knowing if she and her husband were going to be able to make their mortgage payment. She also shared that she spoke with her mortgage company, and they told her that they wouldn't be able to help her unless she was in default.