answer:The Federal Housing Finance Agency has issued new guidelines that require Fannie Mae and Freddie Mac to give home buyers notice of their final decision on short sales within 60 days and to respond to initial short-sale requests within 30 days of receiving an offer from a potential buyer. The faster process is expected to benefit the housing market by reducing wait times, potentially preventing some deals from falling apart due to long wait times, and speeding the recovery in judicial states where foreclosures can take over a year to be approved. Short sales are increasingly being used by lenders, outpacing foreclosure sales in many parts of the country.

answer:The faster short-sale process is expected to have a positive impact on the housing market in judicial states where foreclosures must go through the courts. Some examples of these states where the process is expected to benefit from the new guidelines include New York, Illinois, Florida, New Jersey, and Pennsylvania. These states require foreclosures to be approved by the court, which can result in a lengthy and costly process. The faster short-sale process may be viewed by defaulting homeowners as a more viable option to avoid foreclosure in these states.

answer:Lenders are finding short sales more appealing than foreclosures for several reasons. For one, short sales can be less costly and time-consuming than foreclosures. Unlike foreclosures, which can involve drawn-out legal proceedings, short sales can be resolved much more quickly because they involve a negotiated settlement between the borrower and lender. Additionally, short sales can be less damaging to a borrower's credit score than foreclosures. Borrowers who go through a short sale may still face some negative effects on their credit score, but these effects are generally less severe and don't last as long as the effects of a foreclosure. As a result of these factors, short sales have been on the rise in recent years, and in many parts of the country, they now outpace foreclosure sales. For example, according to CoreLogic housing data from March 2021, short sales represented more than 14 percent of all existing-home sales. This trend reflects lenders' growing preference for short sales as a way to dispose of distressed properties and avoid the costs and complications of foreclosure.

answer:Yes, the new guidelines are expected to benefit home buyers and sellers in the short sale process in several ways in addition to reducing wait times: 1. Greater clarity and transparency: The new guidelines require Fannie Mae and Freddie Mac to provide a clear and final decision on short sale offers within 60 days, along with a detailed explanation of the decision. This transparency will help buyers and sellers understand why an offer was accepted or rejected, which can help them make better-informed decisions about their next steps. 2. More consistent responses to short sale requests: The guidelines also require Fannie Mae and Freddie Mac to respond to initial short sale requests within 30 days of receiving an offer from a potential buyer. This will make the process more predictable and dependable for buyers and sellers. 3. More support for distressed homeowners: Short sales are seen by many as a more humane way to handle distressed properties, because they offer a borrower a chance to avoid foreclosure and salvage some equity in their property. By making the short sale process more efficient and predictable, the new guidelines are expected to encourage more borrowers to consider this option, which could help them avoid the significant financial and emotional costs of foreclosure. Overall, the new guidelines are intended to make the short sale process more streamlined and efficient, which should benefit all parties involved and help support a more healthy and sustainable housing market.