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Fannie, Freddie’s new 30 day rule for short sales: realistic?

It was announced weeks ago that Fannie Mae and Freddie Mac had a master plan for speeding up and improving the short sales process, but the new guidelines issued are being criticized by the real estate industry as unrealistic.



The new 30 day rule

Both Fannie Mae and Freddie Mac have issued new guidelines that they both say are designed to improve the consistency in the short sales process and to expedite the process, but many are questioning if the new guidelines are realistic and if they can be achieved in the real world, according to the

So what are these changes that some call unrealistic? The new guidelines will go into effect on June 15, giving servicers 30 days to review and respond to all short sale requests and short sale offers. If the servicer deems it necessary to take more than 30 days, they must provide the borrower weekly updates and issue a final response within 60 days.

Additionally, if the borrower requests a short sale under the government’s Home Affordable Foreclosure Alternative (HAFA) program, the 30 day clock begins when the borrower submits a completed borrower response package requesting consideration of a short sale. When not requesting a short sale under HAFA, the 30 day clock begins when the borrower submits a short sale offer from a potential buyer and a completed borrower response package.

“With the average short sale nationwide taking about six months to complete, real estate agents are happy to see the new timetable but wonder if it’s realistic,” SFGate observes. Among other concerns with the expedited process is being able to handle the training and staff levels it would take servicers to rapidly handle the current volume of short sales. Consistency is another goal of Fannie and Freddie, but many have expressed concerns over this topic as well.

Another flaw being pointed out by the industry is that Fannie and Freddie fail to mention any repercussions of failing to meet the 30 day deadline. They vow to closely monitor servicers’ performance, but do not issue any penalties for failure. It is possible that this could change in the future.

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  1. Greg Cook

    May 2, 2012 at 2:04 pm

    Without any repercussions, what would be the servicers motivation to change their SOPs?

  2. Roland Estrada

    May 2, 2012 at 8:00 pm

    Funny, I started thinking about the repercussion aspect of this before I even got to that part of the post. There is no fear of God on the part of service companies or their employees. I’ve dealt with third party service company employees that should have been fired but can almost guarantee you they weren’t. The government needs to issue a heavy handed decree – do it or you will suffer heavy financial consequences. They can do it. The IRS does it all the time.

    I had a B of A negotiator tell me she still had to get approval from the MI company. Are you kidding!!! Screw those jerkoffs. Just get it done. They need a Steve Jobs figure to ride herd over these creeps. if you don’t perform, you fired!!

    That goes for service companies as well. One of the worst experiences I’ve had was in dealing with AMO, a third party service company for B of A. What a bunch of incompetent, pathetic losers!!! Do I have enough exclamation points? Probably not. 😉

  3. Jon Griffith

    October 17, 2012 at 4:38 pm

    Who’s to say servicers aren’t going to “lose” documentation in order to say that the home owner hasn’t submitted everything in a timely manner, thereby delaying the start of the 30 day clock, and what incentive do these companies have to follow the rules?  None.

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Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?



Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.



aging housing inventory

aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.



zillow move

zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub,, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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