Move to Shorten Short Sales of Magnolia TX Homes Timeline
Short sales involve homes that are sold at a price that’s lower than the balance owed. Because such transactions generally involve multiple parties and long-distance negotiating, they are more complex than routine Magnolia TX home sales and can get so complicated that many prospective buyers won’t even consider making an offer on a short-sale property. And many of those who do make a bid often walk away because lenders take so long to make a decision. Normally, a short sale is drawn out and laborious, taking anywhere from 3 -6 months to get approved by the lender and to close.
In a move aimed at streamlining this lengthy process and thus keeping many homes from falling into foreclosure, the Federal Housing Finance Agency (FHFA) has issued new rules for Fannie Mae and Freddie Mac aimed at speeding up the short sale process. These regulations, effective June I, 2012, require that lenders make a decision within 30 days of receiving a short sale offer on a Magnolia TX home. They also must consider requests for pre-approved short sales within that same time frame. If the lender needs more than 30 days, it must give borrowers weekly status updates and a decision within 60 days of the initial application. This extension gives lenders more time to determine the value of the property or to get the approval of a mortgage insurer.
The new guidelines can prove to be beneficial for all of the parties involved. For lenders, it could mean saving a distressed property from falling into foreclosure, saving them tens of thousands of dollars in lost property value and costs of taxes, heating, and maintenance. Home sellers, too, would be better off because they often will take just a one-time hit to their credit score for a short sale rather than the multiple delinquencies associated with a foreclosure. And buyers get Magnolia TX homes in better condition because the sellers have been living there and maintaining the property.
Many lenders are already looking for ways to process short sales more efficiently, and several, such as Bank of America, Wells Fargo, and Chase, currently offer cash incentives to owners of distressed Magnolia TX homes to participate in a short sale rather than wait for foreclosure.
Most folks in the real estate field, while applauding the intent of FHFA, have adopted a wait-and-see attitude regarding the success of the efforts to streamline the short sale process.
Whether you are new to the Magnolia Texas real estate market, thinking of moving up, or you’re an experienced investor, Pam Sitterly has the expertise, proven track record, and resources to help you buy Magnolia TX real estate for sale or market Magnolia TX homes for sale. Enthusiasm, knowledge of the area and personal concern for her client’s interests combine to make Pam an outstanding resource for your real estate transactions.
Pam works extensively to help Buyers and Sellers meet their Magnolia Texas real estate goals. For more information about buying or selling your Magnolia TX home, please call Pam at 281-723-0324 or via email with this convenient contact form.