Short Sale Programs

There are many different short sale programs. The main factors in determining what program you will be required to be reviewed for are the following:

What type of loan was used to purchase the property? ( FHA, VA, Conventional.)

Who is the investor on the note? ( Private Investor or a Government Sponsored Enterprise such as Fannie Mae or Freddie Mac.)

Who is the mortgage servicer? (Some lenders have special programs such as the Bank Of America Co-OP Short Sale and others may not even participate in basic short sale programs such as HAFA.)

If a property is purchased with a government loan such as VA or FHA typically it will be required to be reviewed for a VA Short Sale or Pre Foreclosure Sale ( FHA Short Sale). These programs have specific government guidelines that differ from the other short sale programs. If a home is purchased with conventional financing the loan may have a GSE or a Private Investor. Many private investors participate in the Home Affordable Foreclosure Alternative Program which allows a homeowner to receive up to $3,000 if eligible. GSE’s such as Fannie Mae and Freddie Mac have their own programs and set of strict short sale guidelines.

Knowing what type of program you will be reviewed for ahead of time and knowledge of that program will help set adequate exceptions of what to expect throughout the short sale review. Different programs vary in review time frames, homeowner incentives, and criteria for borrower short sale eligibility.

For detailed information on any short sale program or assistance, please fill out the form below or call 310-564-6389.

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