Fannie Mae Will Directly Resolve Short Sale Issues

March 14, 2013

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Fannie Mae recently introduced an expanded HomePath for Short Sales tool to resolve short sale challenges. The tool, a new short sale escalation process, is open to any real estate professional working on a short sale involving a Fannie Mae-owned loan. Once a case is escalated, Fannie Mae will directly engage with the agent or servicer to address challenges such as when you are ready to list a property and need a recommended list price; you want to contest a value Fannie Mae has assigned to a listed property; you haven’t heard back from the servicer; and/or you have an issue with an offer currently under negotiation.

Contacting Fannie Mae about an Active Short Sale

A Job Aid for Real Estate Professionals

If you are a real estate professional seeking assistance with an active short sale, you have the option of escalating certain issues directly to Fannie Mae to get the answers you need.

When should you contact Fannie Mae about a short sale?

  • I’m ready to list a property and need a recommended list price.
  • I want to contest a value Fannie Mae has assigned to a listed property.
  • I submitted an offer to the servicer more than 20 days ago and have not received acknowledgement of it.
  • My request for a valuation has been pending with the servicer for more than 30 days.
  • I have not received an acceptance, rejection or counter to an offer I submitted more than 60 days ago.
  • I have an issue with an offer.
  • I have a question about a Fannie Mae policy related to short sales.

To contact Fannie Mae about a short sale:

  1. Determine if Fannie Mae owns the loan using our Loan Lookup tool.
  2. Read about what information you’ll need to provide on the checklist below.
  3. Ask your client to complete Fannie Mae’s Borrower Authorization Form.
  4. Submit your short sale issue directly at http://www.homepathforshortsales.com/hpshortsaleinquiry.html

Important Info

Know What You Need Ahead of Time
Required Information

Before you contact Fannie Mae about a short sale, make sure you have all of the information you need. The information you need depends on the request you are making. Some information is required for Fannie Mae’s dedicated short sale team to be able to help you.

After verifying Fannie Mae owns the loan, Fannie Mae will need your contact information (listing agent name, agency name, phone number, and email), the Fannie Mae and/or servicer loan number, and a completed Fannie Mae Borrower Authorization Form, which you will need to upload when you begin the process.

In addition to this information, here’s what Fannie Mae will ask you for when you inquire about an active short sale. *Note that the information marked with an asterisk is required*

Publication1

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Bank of America Short Sale Process Presentation

April 19, 2010

 

 On April 8, 2010, Bank of America (BOA) executives held a webinar presentation for over 10,000 Realtors to discuss BOA’s short sale process.

Tip: Refer to the Equator Agent/Homeowner Guide for step-by-step instructions 

Summary

10 Tips to Avoid Delays in Processing Time

  1. Review all documents and images for accuracy prior to uploading in Equator
  2. Ensure that property is listed in the MLS
  3. Negotiate external party fees prior to submission of HUD-1
  4. Supply HUD-1 that is valid for at least 60 days
  5. Ensure that agent and customer tasks are completed as timely as possible in Equator (i.e. accepting short sale assignment, submitting short sale offer, and uploading offer documents within 7 days)
  6. Only submit fully executed purchase offers with all appropriate addendums signed by both buyer and homeowner
  7. Work to get purchase offer representing the best possible fair market value and highest net proceeds for the lender
  8. Set appropriate expectations with buyers/sellers so they understand the complexity and resulting length of time a short sale can take
  9. Work to get a release on outside liens as early as possible
  10. The following situations will cause delays: (1) Change in buyer or agent at any time during the process; (2) Customer files bankruptcy; (3) Deal change after the approval letter is issued

Steps Already Taken to Improve the Short Sale Process

  • Increased staffing and updated training
  • Dedicated Short Sale Call Center:  1-866-880-1232
  • Hours of Operation: 8 AM – 9PM (EST), Monday -Friday
  • Extended Saturday hours – Coming Soon!
  • Equator – primary tool for initiating the short sale
  • Changed procedures to improve associate responsiveness
  • Enhanced the procedure to proactively provide loan status

Steps Underway to Enhance Programs

Home Affordable Foreclosure Alternatives (HAFA):

  • Implemented on April 5, 2010 and are following the HAFA guidelines 
  • HAFA is first in short sale waterfall of options for a homeowner
  • Remember: Some investors (Fannie Mae and Freddie Mac) are not participating; offering a cooperative or traditional short sale
  • Proactive outreach to homeowners
  • Offering a pre-approved short sale solicitation 
  • After offer is submitted, approval within 14 days
  • Promissory Note – Not required with HAFA 
  • Homeowner required to clear second liens
  • Homeowner leaves the home – no deficiency and no contribution

Cooperative Short Sales:

  • Similar in approach to HAFA but wider in scope
  • Includes homeowners who are not eligible for HAFA – non-owner occupied, jumbo loans, Fannie, Freddie
  • Currently in pilot stages with rollout expected 2nd Quarter of 2010

Steps Underway to Educate Agents

Education Materials:

  • Overview of the process so agents can lead process
  • Step-by-Step Guidelines for working through the system as an agent and homeowner
  • Tips to avoid common problems

Outreach Events to Distribute Materials

  • Large Realtor Events
  • Webinars
  • Participation with Short Sale Certification Programs

Want Agents’ Input

  • Developing mechanisms for on-going feedback on process, systems, materials
  • Will act on feedback with continuous improvements

Introduction to Equator

  • 24/7 access to the short sale system
  • Status tracking
  • Direct communication with the Short Sale Negotiator
  • Documents are uploaded directly to Equator instead of faxing
  • Streamlined approval process
  • Historical view of offers and counter offers

Coming Soon in Equator:

  • There are a few specific loan investor types (i.e., FHA/VA) that are not on the Equator system and will be added at a later date
  • Agent feedback, homeowner feedback, and internal data is being leveraged to identify system and/or enhancements for future process rollouts and educational material improvements

Agent Communication within Equator

  • Throughout the process you will receive notifications of the status of the short sale. The system automatically tracks the agent, customer, and bank tasks and will alert you after key milestones have been achieved and to let you know the next steps.
  • For specific questions/concerns you have, the negotiator assigned to the short sale is your primary contact.
  • Please ensure when sending a message in Equator you only select “Negotiator”.
  • We request that you only send messages via Equator and not directly through email. This enables our associates to effectively manage the case load and respond to agent inquires in a timely manner.
  • If you have submitted a request to the Negotiator via Equator AND there has been no response after 2 business days: You should escalate to a “Team Lead” by selecting this role in your message drop down menu.
  • In the event of an urgent issue, such as, a foreclosure sale date within 48 hours: You should immediately escalate to the “Team Lead” and “Manager”; and also call the Short Sale support team at 1-866-880-1232. 

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