New Short Sale Guidelines and Requirements from Fannie Mae, FHA and Freddie Mac

GREAT NEWS!  -  Call or email me if you need help doing a short sale on your home!  It's free and I have the buyer pay for your attorney's fees.  We have an attorney represent you through the entire process.

Freddie Mac - New Eligibility Guidelines as of 2/1/14:

The borrower MUST  HAVE one of the eligible hardships (no exceptions): Borrowers who are 31 days or more delinquent. Borrowers who are current or less than 31 days delinquent, provided the borrower is experiencing one of the following eligible hardships: Divorce or separation Death of a borrower or primary wage earner Borrower or dependent family member has a long-term or permanent disability Distant employment transfer or relocation (MUST be more than 50 miles), including Permanent Change of Station orders for service members The sale is an arm's length transaction The borrower has listed the mortgaged premises for sale with a licensed real estate broker, who, in turn, must have listed the mortgaged premises on the Multiple Listing Service (MLS) covering the market in which the mortgaged premises is located for at least five consecutive days. The listing period must include at least one weekend (i.e., Saturday and Sunday). The listing must be in an "active" status for at least the five days immediately preceding the day on which the purchase offer is accepted by the borrower and submitted to the Servicer for approval. The borrower did not enter into a program or arrangement where a third party takes the title to the mortgaged premises and arranges a short sale in exchange for a fee. If borrowers are current or less than 31 days delinquent, they also must: Occupy the mortgage premises as a primary residence. Have a monthly debt-to-income ratio greater than 55 percent (service members with Permanent Change of Station orders are exempt from this requirement).

Fannie Mae - New Eligibility Guidelines as of 2/1/14:

You are ineligible to refinance or modify your mortgage   You are facing a long-term hardship   You are behind on your mortgage payments or facing imminent default   You owe more on your home than is worth   You have not been able to sell your home at a price that covers what you still owe on your mortgage   You can no longer afford your home and are ready or need to leave The borrower has listed the mortgaged premises for sale with a licensed real estate broker, who, in turn, must have listed the mortgaged premises on the Multiple Listing Service (MLS) covering the market in which the mortgaged premises is located for at least five consecutive days. The listing period must include at least one weekend (i.e.,Saturday and Sunday). The listing must be in an "active" status for at least the five days immediately preceding the day on which the purchase offer is accepted by the borrower and submitted to the Servicer for approval. Both Freddie Mac and Fannie Mae have implemented new guidelines to allow for faster response times.  Both also have tightened eligibility guidelines.  There are many new directives that Servicers are now required to follow.  If you would like more information on short sales involving Freddie Mac or Fannie Mae, please contact Barry Miller's Law Office Short Sale Department at 407-398-6900. Barry Miller's Law Office offers a free consultation to determine if a seller qualifies for a short sale and to explore all options.  Remember on primary residences, the Taxpayer Relief Act was not renewed and Sellers may be responsible for the forgiven debt.

Biggest Mistakes Made By Home Sellers

As the market cools off a bit, thanks to higher interest rates and rising prices, I thought it might help to visit some issues I have with houses I've shown and houses I've personally listed.  And what better and faster way to do that, than an infographic?!  These mistakes will kill a potential sale faster than having Justin Bieber as your neighbor.  Okay, that's a stretch, but you get the idea.  This is also the reason I encourage so many of my clients to go with new construction.  None of these problems exist with new construction. PLUS I rebate 1% back to you, the buyer.  

Early Warning Signs of an Unlicensed Contractor

So in this series, I want to continue with what to look out for when hiring a person to do work on your home. In this segment, let's go over the warning signs. 

Unlicensed Contracting – Early Warning Signs

• “Licensed & insured” doesn’t mean a thing by itself. It is a requirement per Florida Statute / St. Johns County Ordinance that an individual / company has their license number displayed on all advertisements, contracts, and business cards.
• You are asked to obtain the permit. A licensed contractor will always obtain their own permits.
• Verbal contract only, no detailed terms in writing. This is usually a sign of an unlicensed individual.
• Contractor does not have proof of insurance. All contractors must have general liability and workers’ compensation coverage or workers’ compensation exemption current at all times and be able to prove it. Call their agent to verify or contact the County Licensing Department.
• You are informed the job does not require a permit or inspections. All projects, except very minor repairs, generally require a permit and inspections.
• The contractor prefers to work on weekends or after hours. This is often a sign an individual is not licensed and may be afraid to work when building inspectors are on duty.
• When someone other than the person contracting with you obtains the permit. Additional questions may be necessary.
• Contractor displays only a local business tax receipt, (formerly Occupational License). In order to lawfully engage in contracting the individual must hold a State Certification, State Registration or Specialty Trade License in the field they are contracting. Each will have a current wallet card bearing his name and scope of trade.
• You are asked to make check payable in the individual contractor’s name or asked to make payment in cash, or to make the check payable to “cash.”
• Licensed contractors usually have separate business accounts, so when paying by check the check should reflect the same name as on the contract.
• Advertisements and contracts should reflect company name, phone number and contractor’s license number. Contractors will have an address, phone number, and license number which you should verify with you local Contractor Licensing Department.