California Tries to Speed Up Short Sales

Always the first to stir the mix, California is once again making strides by trying to shorten the short sale process with Fannie Mae backed loans. The California Association of Realtors (CAR) is working together with Fannie Mae to help Realtors get short sale approvals in a shorter time frame by leveraging technology and an assistance desk.

With the help of local multiple listing services (MLSs), agents will be able to provide accurate comparative market analysis data to pinpoint property valuations, thus providing the comprehensive information needed for faster approvals. The Fannie Mae Short Sale Assistance Desk will assist agents with the process.

The new system aims to provide agents with a response within one week that the initial submission was reviewed. If not received in that period the Short Sale Assistance Desk will aid agents in obtaining responses from the servicer. The goal is for agents to work with the servicers first, and then have the Assistance Desk step in if necessary.

The Short Sale Assistance Desk aims to get an initial response in 20 days, final property valuations within 30 days, and a final decision within 60 days of the original offer submission. That means a maximum of 60 days for short sale approval–this could make a big difference in the market.

To qualify for assistance the following requirements must be met: the first lien on the property must be owned by Fannie Mae, there must be a valid offer on the property, the agent must have a signed authorization form from the borrower and must be a member of the MLS.

This attempt by California is testament to the fact that states will be playing a bigger role in distressed property issues. Hopefully this will have a positive effect in making short sales shorter and strengthening our markets.

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