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Real Estate Law Blog
Real Estate Law Blog
|Posted on January 24, 2013 at 3:08 PM|
On January 18, 2013, Fannie Mae and Freddie Mac announced changes to their servicing requirements for short sales. Please see below for some key changes that all parties involved in a short sale should be aware of. These changes apply
to all Fannie Mae and Freddie Mac short sales; with an offer and without an offer.
Title Transfer requirement change:
Note: The above restrictions will run with the land, which means that the restriction is not personal to the seller
and will pass to the subsequent buyer upon transfer of title.
Below is an example on how to calculate the 120%
The borrower may be entitled to an incentive payment of $3,000 from Fannie Mae/Freddie Mac to assist with relocation expenses following successful completion of a short sale unless:
1. The borrower is required to contribute funds or execute a promissory note.
2. The borrower has Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other
government relocation assistance.
3. The servicer has knowledge that the borrower is receiving relocation assistance from another source other than the
Note: If the borrower receives relocation assistance from a source other than Fannie Mae / Freddie Mac or the
Servicer, the difference in the relocation assistance amount up to the $3,000 incentive maximum may be provided.
If the borrower will receive relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer
and the amount is equal to or greater than $3,000, no relocation incentive will be provided.
It is vital to have an attorney negotiate and close your short sale transaction. Call THE LAW OFFICES OF JEANNE M. REARDON to assist you with your short sale. Free initial consultation. Call us at (516) 314-8433.