Dont' Be Afraid of the Short Sale

Here is some great news for people you are looking to purchase a short sale property.

MFRMLS has joined forces with Fannie Mae to launch a Pre-Approval Pilot, beginning in mid-December 2008. All MFRMLS members are invited to participate in the pilot, which is intended to help streamline the pre-foreclosure process – and facilitate quicker closings. It’s a Win/Win for both members and consumers!

Preserving homeownership is our number one priority. When homeowners become distressed and have exhausted all means to preserve homeownership, they will look to you for assistance with a short sale. For many, this may be the most graceful exit to help prevent foreclosure.

This pre-approval pilot can offer a more transparent, streamlined short sale process by:
Taking the guesswork out of price negotiations, thereby minimizing the timeframes for approval and closings!

Under this pilot, if a buyer makes a full-price offer on a pre-approved property, the lender will accept the offer if the transaction meets other standard requirements (e.g., asset check, fraud detection, no second liens, etc.). The pilot will test a new process by which Fannie Mae pre-approves the list price for a property that is secured by a Fannie Mae loan.

For the purposes of the pilot, Fannie Mae has validated a specific list of properties that have already met the following criteria:
The property must be secured by a Fannie Mae mortgage.
The mortgage must be serviced by Countrywide Home Loans.
The property must be a potential short-sale (i.e., the list price is less than the unpaid balance on the mortgage).