Written By: Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing and co-founder of its new division, The Center for Asset Preservation. For information on the industry's first and only comprehensive training (live and online) on Short Sales under the new Making Home Affordable program, click here.
There’s an old saying, “It’s not always what you don’t know that hurts you, and it’s what you know for sure that isn’t so.”
Loan Officers and real estate agents currently working the short sale market may soon find themselves in this situation. What we’ve been taught about how to do successful short sales will soon work against us and our sellers because the government just changed all the rules with the new Making Home Affordable (MHA) program. We must do things differently. Very differently.
The Making Home Affordable program is being managed by the Treasury and Fannie Mae. It covers the majority of mortgage loans, including all loans owned or guaranteed by Fannie Mae or Freddie Mac, FHA loans, and loans held in the portfolios of about 50 of the major servicers. For these loans, the new MHA policies and processes are mandatory. Loans managed by participating servicers for other lenders/investors will be included in the program unless servicer/investor contracts are in conflict with MHA provisions. The FHA version of the MHA program has been modified somewhat.
Good News and Bad News
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