San Diego Housing Market News and Analysis
Nov 1 Short Sale rule change
User Forum Topic
Submitted by sdduuuude on October 9, 2012 - 9:33pm
Fannie/Freddie is changing the rule Nov 1 that will allow homeowners who are current on their mortgage to enter a short sale if they can show some particular hardship.
Thoughts on the effect of this change ? The article seems to suggest it is fairly significant.
I didn't even know that banks typically won't let you short sell a home unless you have stopped making payments.
I could see how this policy change could possibly bring some new, and possibly reasonably-priced inventory to the picture. Maybe there's lots of people out there who want to sell but are upside down and don't want to stop making payments. They either list it high enough to avoid the short sale or don't list at all - which would explain the current market, eh ?
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