The Federal Housing Finance Agency (FHFA) announced newer guidelines for Santa Monica short sales to take effect in November of 2012, but what do these guidelines mean for you? There are many guidelines for sellers and lenders alike, but the new guidelines for lenders are designed to make the Santa Monica short sales process easier and quicker for buyers and sellers alike.
One of the biggest changes to the guidelines involves the amount of time that lenders can take when approving or denying an offer. In fact, lenders are now required to respond to a short sale offer within 30 days of receipt. For anyone who has worked with Santa Monica short sales, it is a big change to the often very lengthy process.
Another welcome change is that lenders must provide borrowers with weekly update as to the sale process. Many borrowers consider this a welcome change. For years lenders have put Santa Monica short sales on the back burner because they do not bring in any income, but the guideline to continually offer updates may drive lenders to let go of Santa Monica short sales quicker.
Finally, when working with Santa Monica short sales lenders are required to let the borrower know of a decision to reject of accept any offer within 60 days of receipt. While it is important for the borrower to know where in the Santa Monica short sales process their home stands, this guideline can be a definite advantage for buyers. Buyers no longer have to wait an undisclosed amount of time to hear about an offer.
These newer guidelines should make the Santa Monica short sales process easier to work with. It takes the stress and unsureness out of the equation. Hopefully, it will help to get many of these homes back on the market so that they can continue to contribute to the housing economy.