Sandy Flores broker


International Real Estate
  Contributor @TELEVISAUNIVISION               KMEX 34  Los Angeles,              El Gordo y La Flaca,
               Santa Ana College               


International Real Estate
KMEX 34  Los Angeles, El Gordo y La Flaca,
Santa Ana College Community Services Program

New Rules To Prevent Foreclosure’s

By Sandy Flores

Special to Excelsior

In recent months, we have significantly increased the number of homes that are repossessed for nonpayment. It is very important to know that there are many resources for families who are experiencing financial problems and could lose your home.

 Many home owners are no strangers to this situation, on the contrary are currently experiencing this reality. Most importantly, investigate the alternatives available to deal with a situation like this and to avoid repossession.

If you can not continue to make payments for involuntary reasons, or in the worst case and has missed payments that could not meet, it is important to know that you have options.

The Federal Agency for Housing Finance (FHFA for short) announced that Fannie Mae and Freddie Mac are issuing new guidelines for providers servers mortgage services to work better through a recent implementation and consolidation of different existing short sales programs into a single standard short sale program.

It will provide more technical so that borrowers can have a clear understanding of processing a short sale when they are facing foreclosure. The optimized program rules allow lenders and administrators who may qualify to eligible borrowers through a simple and effective process.

These new guidelines, which came into force on November 2012, will allow the owner of a house with a mortgage from Fannie Mae or Freddie Mac to sell your home in a short sale, even even if they are current on their mortgage payments but have financial problems continue to make their monthly payments.

“These new guidelines demonstrate a commitment to FHFA, Fannie Mae and Freddie Mac to improve and streamline processes to avoid foreclosure and stabilize communities,” said FHFA Director Edward J. DeMarco.

“The new standard short sale program will also provide relief to those borrowers who find their property values ​​below the current value in the market today, and they need to relocate more than 50 miles to their workplaces.

The offer of a short sale will optimize the rapprochement between borrowers who are in need or facing foreclosure. Borrowers who have missed payments, credit scores continue to decline and severe financial difficulties will benefit most because the minimum documentation required now with these new changes.

Also, administrators can quickly mortgage easily qualify certain borrowers who are current on their mortgages for short sales. Also, between changes indicate that bank managers can process short sales for borrowers who have financial problems without additional approval from Fannie Mae or Freddie Mac, even if it includes borrowers who are current on their mortgage payments .

Fannie Mae and Freddie Mac will waive the right to bring lawsuits for deficiency balance in exchange for a minimum financial contribution, only if the borrower has the financial economic level with sufficient income, assets or substantial to make this contribution.

Military personnel with orders to permanent change of station will also benefit. Service members who are being relocated will be automatically eligible for short sales even if they are current on their existing mortgage and not be under any obligation to contribute funds to cover the shortfall between the outstanding loan balance and the sale price Property.

Fannie Mae and Freddie Mac will offer up to $ 6,000 to holders of second mortgages to streamline the short sale.

This consolidation comes as part of a broader effort FHFA, the initiative to repair and optimize alignment Fannie Mae and Freddie Mac programs, short sales and other alternatives to avoid foreclosure and help homeowners who continue to fight for avoid it.

The FHFA announced these guidelines in June and sets strict for administrators to consider short sales as the best option to avoid foreclosure timelines. Managers are required to review and respond to applications of short sales within 30 days of receipt of an offer for short sale by the homeowner. After that period must provide updates of the tender, if the continuous offer under review, and shall make and communicate final decisions to the borrower within 60 days of receipt of the offer as well as the package of complete response the borrower.

The Federal Agency for Housing Finance (FHFA, for its acronym in English) encourages owners to take action early, before facing more serious problems if economic difficulties that affect their ability to keep up with their mortgage payments.

Short sales are transactions that are processed with careful coordination and close cooperation between a number of parts: server’s, appraiser’s, borrower’s, buyer’s, realtor’s, title agents and mortgage insurers, as well as holders of second loans or lines of home equity. A short sale provides a better outcome for borrower’s, investors and communities.

Program Alternatives to avoid Foreclosure simplifies and streamlines the short sale process providing procedures, deadlines and standard documentation and effective.

You will be eligible under the rules of Fannie Mae, to buy another home in two years, instead of five to seven years if your credit report does not reflect repossession.

If your bank approves the short sale, it has the right to issue a 1099 for the difference, due to a provision in the IRS code about debt forgiveness. But if you qualify for tax relief from the Internal Revenue Service, you may exclude the payment of these taxes under the “Law of the Mortgage Forgiveness Debt”. Keep in mind that the Internal Revenue Service (IRS, for its acronym in English) consider debt forgiveness as income as the IRS Publication # 523 states, if your home is repossessed, or NO, you have made a sale to IRS purposes.

It is urgent that you take action as soon as possible if you are going through a similar situation, before the time you win and have fewer options to avoid the replacement property. You can visit the website:

As always, it is advisable to seek advice from a professional with experience and knowledge in this type of sales, to help determine and make a more informed decision and advantageous for you.

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