30-60 Day Fannie/Freddie Approvals? Second liens STILL killing deals?

Posted on Jun 15, 2012 by Trent Chapman

1) As you probably heard a couple of months ago, because of pressure from the FHFA that oversees Fannie and Freddie, both entities announced that they want servicers to reply to short sale offers within 30 days (well… 30-60 days) starting today, June 15, 2012. This response can be an approval or denial or counter offer.

My response to this is, “doesn’t HAFA already require this and we haven’t seen that happening consistently with HAFA short sales?” …and I also asked myself, “self, what will change if there are no “teeth” (consequences) for non compliance?”.

Maybe it’s just me, but I will remain skeptical as I’ve heard about a lot of “programs” and “changes” over the years that have mostly had little, if any impact on the outcome. I still believe that ultimately if we want short sales to close faster, it will happen from what we do, not what we HOPE that the banks/servicers/investors/government will do.

2) I am helping a reporter with a short sale story… but he needs more stories.

That’s where you come in. What’s with these crazy second lien servicers hoping for 30%, 40% and 50% of the second lien balance?

Of course we’ve seen it for years, but some are starting to stand out as “consistently crazy”. We are hearing more and more agents complain about default servicers such as Real Time Resolution and Green Tree and even continued frustrations with second lien servicers such as USAA, Navy Federal, US Bank and PNC to name a few.

PLEASE SHARE YOUR STORIES BELOW… or send us an email with your horror stories of how a second lien servicer’s demands, “killed” a short sale and caused the home to foreclose.

If your story is what the reporter is looking for, we’ll have him contact you to get the full story.

THANKS FOR SHARING! By making their tactics more public, these entities are scrutinized and forced to change their unfair practices which cause more problems for homeowners and for their investors who they should be working to mitigate their loss.