Gene's Chicagoland Mortgage Blog: Short Sale Transactions Will See Changes Soon

Short Sale Transactions Will See Changes Soon

It's said that:

"the only thing that is

constant is change".

That statement is especially true in the modern real estate and mortgage industries ...

   Changes are about to occur once again in regards to Short Sales (Pre-foreclosures). If you're an agent that assists Short Sale clients ... and especially if you are presently involved in a Short Sale transaction ... these changes may affect your deals and require immediate action.

     Underwriting guidelines are changing with respect to the WAITING PERIOD after a Short Sale (Pre-foreclosure) and/or a Deed-in-Lieu of Foreclosure:

     Effective for those transactions with Mortgage Approval dates of August 16, 2014 and beyond ...

     All Borrowers must wait a period of 4 years from the actual SALE DATE (Closing) or DEED DATE (Deed-in-Lieu), regardless of credit scores and downpayments.

   Pay special note: These new guidelines establishing a standard 4-year waiting period will be enforced on all Borrowers, regardless of loan-to-value ratios ... unless they have extenuating circumstances that come into play. If extenuating circumstances apply, a 2-year waiting period will be permitted.

     Should you currently be involved in a Short Sale (Pre-foreclosure) transaction take pre-emptive action now. Check with your Mortgage Lender immediately to see how this does/does not effect your transaction.

   If in Will County, or elsewhere in the Chicagoland-area, please contact me for further information regarding these changes and how you can best assist your Short Sale clients moving forward. Short Sales, Foreclosures, and Bankruptcies don't have to ruin your client's life or prevent them from buying a home longterm.

     Short Sale Transactions Will See Changes Soon: But options DO exist that can assist them while facing this challenge. Your referral to a knowledgeable Mortgage Lender experienced in successful Short Sale transactions is the best initial advice you can provide a client.