What You Need To Know About Requesting A Freddie Mac Closing Extension

When Freddie Mac (FHLMC) is the investor on an approved short sale they typically will allow 60 days max to close. The initial approval letter is usually issued for 30-45 days unless if there is a set foreclosure sale date within that time frame.  If you end up coming down to the 60 day mark and need an extension closing officers likely will quote guidelines that no extensions are allowed past the 60 day mark when FHLMC is the investor. From experience it is possible to to receive minor extensions past the 60 day mark to close, but you will typically encounter major resistance from the lenders to request this. Prepare to build a case with supporting closing documents such as prior to funding conditions or some sort of proof that loan documents are at escrow/title or on the way. If you are able to show that you really are going to be closing shortly lenders can reach out to the FHLMC to make an exception to their 60 day rule. Don’t let low level bank representatives shut the door on you ever in a short sale transaction. Reach out to their supervisor or another higher level representative until you reach someone who is willing to hear you out and actually put their best effort forward in trying to see if they can make something work.

For assistance or questions on any short sale  matter, please fill out the form below.

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