I recently had a short sale denied. I was representing the buyer. The short sale progressed as normal. 4 months of waiting through the bank shuffle of unorganized levels of processing. Last week we were informed the short sale was denied because Fannie Mae was the investor on the loan. Fannie Mae requires the seller to be 30 days late on their mortgage payment before they will even consider the short sale. Again, it took the bank 4 months to find this out. Why? I think this is one of many examples of how screwed up our banking system is that they would waste this much time, money and manpower of their own resources just to find out Fannie Mae was the investor on the loan. So now my buyer has to wait while the seller misses their September payment, reports late on October 15th to start the process all over again.
In itself the whole things sounds like an oxymoron. The government continues to bail out the banks and at the same time encourages people to stop making their mortgage payments. I have since been told this was to deter those thinking of doing a strategic default. However you only have to be 30 days late ... once. After the first month you can start making your payments again, just not catch up until the short sale is complete. Really????? Honestly, Fannie Mae truly believes this is going to deter someone with 1 30 day late from not walking away from their home.
It is hard feeling like a guppy in an ocean. I hate asking questions anymore because it leads to more unanswered questions. Like cancer the politics involved in all of the banks and the government has spread to a level that I think they are unable to control now.
In light of all of this, a family member emailed me this article from September 1999 talking about Fannie Mae. Is this guy psychic or what? The article will blow your mind. Click link below
Fannie Mae New York Times September 1999
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