Written By: Brent Green, Staff Writer, MortgageCurrentcy.com.
For a long and frustrating time, we have been commenting on and responding to Fannie’s lack of policy specific to Short Sales & Deed-in-Lieu – WELL IT IS FINALLY HERE, AND YES, IT IS CONSIDERED A “PRE-FORECLOSURE SALE”.
Fannie Mae is further defining “pre-foreclosure” and updating policy for waiting periods, bankruptcies, and re-establishing credit. The terms “short sale” and “pre-foreclosure sale” are now considered to have the same meaning – the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.
Some good news here — waiting periods have decreased if you have more money to put down. Here are the new waiting periods, which go into effect on July 1, 2010.
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