Rules for Short Sales in Effect

The Tri-Cities housing market has been fortunate compared to other parts of the nation as far as the number of foreclosures that have occurred here, but some folks have had to sell their homes in a short sale situation. It’s taken more than a year, but the federal government’s short-sale rules took effect April 5. Lenders must now use standardized forms and time lines, and if they already participate in the government’s program for modifying loans of troubled borrowers, they’re limited in the restrictions they can impose when they process short sales. Fannie Mae and Freddie Mac are set to release their own versions of the rules, though they haven’t said when. When they do, most loans will apply (FHA-backed loans are the exception). For more, watch this video “Understanding Federal Short Sales Rules” at www.REALTOR.org/shortsales.