FANNIE MAE ANNOUNCES NEW SHORT SALE GUIDELINES
If you are an agent in Massachusetts or New Hampshire that specializes in short sales you should be aware of new guidelines posted by Fannie Mae recently that affects the LISTING of your short sales. Initially, I had some short sale investors up in arms, until I thoroughly read through the servicing announcement. I have no cause for concern now that I’ve read this and am giving my opinion of this announcement below:
These guidelines go into effect August 1, 2013
1) Properties must be listed for a minimum of 5 days (including a weekend) prior to a short sale negotiator submitting to a servicer
2) Properties be listed on the local MLS or geographic area where the property is located
I have reviewed these guidelines and had many investors who deal in short sales come to me with concern. I don’t see much to be concerned with. Most short sales must be listed on MLS these days, and if you read this publication carefully, it holds the SERVICER responsible for making sure that the property has been listed for 5 days before the SERVICER submits the offer to Fannie Mae.
What this means is the property becomes active on MLS – no where does it say that you cannot put the property under contract immediately. It states that it must be LISTED on MLS for 5 consecutive days. Our properties stay on MLS throughout the negotiation process, unless for some reason the listing expires, in which case we have the listing agent draw up an extension.
As far as listing on MLS in the geographic area that the property is located, I’ve always felt that if this wasn’t done, something was a bit suspect in the process. It’s not to say something is wrong, but I think best practice should dictate that you list on LOCAL MLS and not some other MLS.
No fear investors. You can still make offers on well priced short sales out of the gate. It takes a servicer at LEAST a month in most cases to SUBMIT the short sale to Fannie Mae. In my opinion, you are in the clear to make offers and clean up this housing mess to your hearts content.