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Tuesday, July 8, 2014

August 16th Fannie Mae Guideline Change Regarding Short Sale Timeframes On Purchasing

Deed-in-lieu of Foreclosure and Preforeclosure Sale Message Updates (Fannie Mae)

"The waiting period requirements for borrowers who have had a previous deed-in-lieu of foreclosure or preforeclosure sale are being updated to now require a four-year waiting period; though a two-year waiting period will be permitted if the event was due to extenuating circumstances and the loan complies with all requirements specific to a deed-in-lieu of foreclosure or a preforeclosure sale due to extenuating circumstances, as specified in the Fannie Mae Selling Guide. The loan-to-value restrictions previously tied to different waiting period timeframes are also being removed."




Currently, the waiting period is only 2 years with an 80% loan to value (4 years is 90% loan to value).  This will change to 4 years on August 16th.  However, after 4 years the guidelines are changing to a minimum 5% down payment and a 620 Fico Score.




If you have any buyers that may be affected this may be the time for them to hurry up and buy their home.


We are always here to preapprove your buyers!




Bob McCormick, President




www.mccormicklendinggroup.com


"Don't Overpay For Your Mortgage"