FNMA has confirmed the Short Sale Seasoning requirements will change from 2 years to 4 years effective Aug 16, 2014. Now would be a good time to contact those buyers currently on the fence with a Short Sale less than 4 years ago. It’s not too late for them to purchase, but we need to act FAST. All loans meeting the 2 years Short Sale requirement will need to have final loan approval by Aug 16, 2014.

Quick Reference Guide to Fannie Mae Short Sale/Foreclosure Policy:

Up until August 16, 2014:

Short Sale/Deed In Lieu – 80% LTV on purchase or rate and term after two years.

Short Sale/Deed In Lieu – 90% LTV on purchase or rate and term after four years.

Foreclosure – waiting period 7 years.

After August 16, 2014

Short Sale/Deed in Lieu -95% LTV on purchase or rate and term after four years.

Foreclosure – waiting period 7 years.

Further updates and clarification will become available over the next few weeks through Fannie Mae.

All information gathered via the Fannie Mae release notes DU Version 9.1

Tags: Buyers, Lending Changes, Short Sale