Fannie Mae is Changing Some of Their Guidelines- We are Here to Help!

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Thanks for returning for another edition of our video blog. Today we are talking about a very important topic that's going to affect the marketplace. On August 15, Fannie Mae will change up their guidelines for those who have gone through a short sale or foreclosure. Now, instead of waiting 2 years to buy a home, which has been the case, someone who has a short sale or foreclosure will have to wait 4 years.

One of the biggest reasons we have been seeing price gains here in Southern California is because so many people that have gone through short sales or foreclosures have been able to purchase a new home relatively shortly after.  Before August 15, you will have to have your DU underwriting set in stone, in addition to being in escrow. If you have to wait until after the deadline, you will be in trouble and see a lot of people in the same boat. There are exceptions, however, including extenuating circumstances that cause financial hardship. This won't be the case for a lot of people, however. People who have gone through short sales, a lot of times did so for reasons other than financial. These people will be hit hard by this Fannie Mae decision.

If you are in a situation where you have done a short sale within the last couple of years, this will really affect you - now you have to wait at least 2 years longer. We will have to see how this shakes up the marketplace.

Thanks for taking the time out of your day for us, If you have any real estate questions, please give us a call or send us a text. We would love to help you out!