Short Sale Decline due to Property not on Market for sufficient amount of time ?
Fannie Mae and Freddie Mac implemented a new guideline a few years back that required a property to be on the Market for 5 business days and a full weekend before an offer could be accepted. Properties not marketed on the MLS for the 5 business days and a weekend have been getting a short sale decline and forced to be placed back on the market for the required period of time. This change began the movement with marketing requirements now being implemented on most if not all short sales.
After Fannie Mae and Freddie Mac made the change most investors followed in their footsteps like they have been for years. Bank Of America now also requires the property to be on the market for 5 business days and a weekend before an offer can be accepted. If the property is not marketed for this amount of time , no matter where you are in the review process, you will likely get a short sale decline.
HUD loans, FHA loan are also requiring a short sale listing to be on the market for a minimum of 15 days before an offer can be accepted and if its not you will get a short sale decline and in most cases will be forced to start the review process from square one after the property is marketed.
This can certainly spice things up. All offers received during the marketing period must be presented to the sellers and the short sale lender putting the involved parties in a position where they are forced to accept another offer after spending days, weeks, or months moving forward with an offer who thought they were accepted.
In some cases its possible to overcome this strategically ,it’s important to be able to navigate the mortgage servicers system efficiently or the runaround and minor setbacks can make your review last ages.
If you have questions about an underwater mortgage, loan modification, foreclosures ,short sales , Reverse Mortgage Short Sale please call us at 888-572-8020.