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Dublin Short Sale – Do I Need to Miss a Mortgage Payment?

by Scott Fuller on November 1, 2012
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Hi, everybody, Scott Fuller with the East Bay Short Sale Group. We are your Dublin, California, short sale specialists. I want to talk about something that’s going into effect tomorrow, November 1st, 2012.

A lot of times we get questions, “Can I do a short sale without being delinquent on my mortgage payments?” Historically, the answer was no. They would require that you had delinquencies, which show that there was some sort of a hardship; you weren’t able to continue to make the payments. Effective tomorrow, mortgage-backed security holders, Freddie Mac and Fannie Mae, are actually changing those guidelines, and they’re saying with some particular criteria, if you meet the criteria as a homeowner, you do not have to be delinquent on your mortgage payments. Well, those criteria include if you’re unemployed, if there’s any type of death or divorce, or if you work more than 50 miles away and there’s a job transfer that’s taken place. Then, in situations like that, effective tomorrow November 1st, you no longer have to be delinquent on your loan if the mortgage is owned by Fannie or Freddie.

Another thing to mention for Fannie and Freddie owned mortgages as well, they will actually expedite the short sale process if you’re more than 90 days late on the loan and your FICO score is below a 620. In addition to that, they’re not going to require that you provide any financial documentation, any hardship documentation. Apparently, those two criteria in and of itself will help them to go ahead and approve the short sale. So, that’s good news for homeowners that can demonstrate hardship. Let’s say, for example, if you don’t fall into any of those categories but you still feel that you have some sort of financial hardship, you can certainly get approved for a short sale. However, you’re probably going to have to demonstrate that you do have a financial hardship by not making payments. You will have to be delinquent.

If you have any questions about your particular situation, how a short sale might work for you, and how the process works, let us know, Again, we do a lot of deals in Dublin, California, and a lot of other cities in the East Bay, so contact us for more information


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