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The number of homeowners in default has led Fannie Mae to experiment with a pre-approval process for a short sale prior to getting an offfer on the property.If this test works, it will reduce the time necessary to get the short sale approved and make the concept of a short sale more attractive for the seller, Realtor, and more importantly the potential buyer. Often times, buyers have passed and not put offer in on homes that were subject to a short sale approval due in part to the longevidity of getting the offer approved. I am sure that Fannie Mae may have discovered as many Realtor have that the longevidity contributes greatly to the attempted short sale often times going into foreclosure. When this happens the lender now has the added risk of losing more money by the value being exposed to the downward trend in market value. This experiment is hoped to yield a closing process that is closer to that of a traditional conventional mortgage or FHA loan. Both products can take up to 30 to 45 days to close were as the short sale have taken as long as eight weeks. Lastly, this new concept is being experimented upon in hopes to move the market to an upward trend by reducing the amount of properties that are on the market for sale.Written by Serena Brownhttp://www.taylorbrownrealestatetalks.com/
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