Here is must read information for anyone considering a Strategic Foreclosure or Short Sale. This post, via Bob Hertzog, shares new guidelines on how FNMA will treat a future home purchase for homeowner's who have experienced a foreclosure or short sale.
Please consider all your options carefully and consult with a real estate attorney and tax professional before taking any steps in a foreclosure or short sale direction.
If you are considering a short sale in the Del Norte County real estate market, I am available at your convenience to explain how this process works.
Contemplating A Strategic Default? FNMA Says You Must Now Wait 7 YEARS To Buy Again!
On Wednesday, FNMA announced a change in the timeframe to purchase after a foreclosure. Beginning July 1st, 2010, homeowners will be forced to wait 7 YEARS before purchasing another home backed by FNMA (previously, there was a 5-year wait).
This new announcement will dovetail into the announcement that they made on April 30th regarding waiting periods for those homeowners that choose to short-sell their homes. Basically, homeowners who choose to work with their lenders will be forced to wait anywhere from 2-7 years, depending on whether there are "extenuating circumstances", and the amount of down payment that a homeowner chooses to put down (i.e. with no "extenuating circumstances", a homeowner who chooses to put down 20% will only have to wait 2 years, while a homeowner who chooses to put the minimum required down will have to wait 7 years). Both of these changes will go into effect on July 1, 2010.
Regardless of where you stand on the issue of "strategic defaults", FNMA is making it very clear that they would much rather see a homeowner work with their lender, rather than simply "walking away" and handing their home back to the bank.
The bottom line is this: By simply "giving up" and handing your home back to the bank, you will not be able to purchase a home through FNMA for 7 YEARS (unless you have "extenuating circumstances" that led to the foreclosure). If you short sell your home, you will be back in the game in as little as 2 YEARS. To make things easier to digest, please see the following FNMA announcements that go into effect on July 1, 2010:
New Foreclosure Waiting Periods
New Short Sale Waiting Periods
What Are Extenuating Circumstances?- Download the Seller Handbook (updated 5/27/10) and go to page 427
Please take a moment to familiarize yourselves with the links provided. They are very informative, and will help you to better understand these substantial changes.
Bob Hertzog
Designated Broker-Summit Home Consultants 2009:
95% Success Rate Closing Short Sales
www.phxshortsalehelp.com
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