For those of you thinking of short-selling your home and trying to get a new mortage in the near future...

[muck]

I had a chance to speak w/ a residential mortage underwriter this morning, and she happened to comment that Fannie Mae / Freddie Mac may be changing their underwriting standards where they'll consider a short-sale to be no different than a foreclosure on underwriting new credits.

 

So, if this is true, and you're thinking of (or have already) done a short-sale ... if you want to borrow money for another house in the near future, you'd be well served to try to make it happen before Fannie Mae / Freddie Mac change their underwriting standards (if they haven't already).

 

IMO, if Fannie Mae / Freddie Mac change their underwriting standards like this, it'll slow down the recovery by a measurable amount.

[wiegie]

Somewhat relatedly, it was announced yesterday that Freddie Mac and Fannie Mae are going to make refinancing underwater homes quite a bit easier. If either Freddie or Fannie has held your mortgage since May 2009, you are current on your mortgage (and have only been late once in the last year), you are going to be allowed to refinance your mortgage at current rates no matter how far underwater you are. (They are making it quite a bit easier to do these refinancings, no appraisals, lower fees, etc.)

 

It might help out some people here.

 

Notes: (1) you'll still be in debt just as much as you were before, it's just that you'll be able to lower your payments via lower interest costs.

(2) if your mortgage is not backed by Freddie or Fannie, you are still SOL.

[Big John]

Not good as I may have to move if i find a new job