Hot Off the Presses--Good News for Short Sale Investors!

[Catherine Coy]

Dated: June 25, 2008

"Seasoning" for short sale, as compared to foreclosure, is TWO years, not FIVE years as with foreclosure.

I'm amazed...but there it is in black and white in unequivocal language. Now we can say, without fear of contradiction, that a short sale is BETTER FOR THE HOMEOWNER than a foreclosure in terms of seasoning. Wow...

My fellow Americans, this Announcement hasn't even made it to Fannie Mae's website. As soon as it does, I'll post it here.

Establishing a new policy for preforeclosure sales. A preforeclosure sale [short sale] involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer. Due to the increased incidence of preforeclosure sales, Fannie Mae is establishing a 2-year elapsed time period for reestablishing credit following completion of the action.