The goal of our comprehensive Short Sale program has always been to get our clients out of their underwater properties, mitigate all the debt and selling costs, and help them get started over again after a waiting period.
Our Day 1 Strategy Call, encompassing mortgage payments and pre, interim, and post credit strategy, has served us well. Our clients have been able to obtain new mortgages and we are now helping them directly with our affiliate mortgage company Jefferson Mortgage Group LLC.
Now this may make getting a new mortgage after a Short Sale sound easy but that would be misleading. It is not easy and the market, irrespective of new Federal guidelines, has not been fair. The landscape has changed significantly in the past three years as the government and secondary market mortgage providers have adapted to regulation and perceived risk after enduring the brunt of the mortgage crisis.
Effective November 2012, the FHFA as the representative governing body in charge of the conservatorship of Fannie Mae and Freddie Mac promoted a new and very attractive guideline for homeowners that were successful in completing a Short Sale. The new guidelines allow for new mortgage eligibility only two years after a Short Sale with general qualifying requirements being met. My team thought this was terrific and so I blogged about this being a reward for those that chose the path of providing their lenders a solution with a Short Sale versus the alternative.
The lending environment today is not fair and could be best described as a pool of mistrust. The lenders do not trust the government and they are wary of reps and warranty liability on loans, and fearful of government recourse for what may be perceived as aggressive lending policy. That’s right policy! For this reason, lenders have placed underwriting overlays on all lending products. Bye Bye two years to a new loan. How about four years? The lenders have seen the government sue the industry and there is no trust. The result is you suffer. Our credit guidance lawfully provided through our law firm as part of our Short Sale program is now more paramount than ever. We have gotten clients new mortgages in as little as two years after a short sale, but that is now the exception. You would be better served to focus on a solid three year expectation after a Short Sale and there are significant restrictions. It’s all part of the crisis and history has shown that it takes a long time to heal.
If you have an underwater property and you are contemplating a solution you should consider a short sale with proper debt mitigation strategy while the mortgage debt relief act is still on your side. You can research this on our site with a video and other informative material at www.thenegotiatedsolution.com . If you have successfully completed a short sale in the past and you are now ready to buy again, please come visit us at our mortgage site at www.jeffersonreversemortgage.com
. We can help you find the right local realtor and we can also help you get a new loan where others may categorize you as ineligible. Success with either of these topics always begins and ends with a plan.
Blogging from the front line of the housing crisis.
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