On January 18, 2013, Fannie Mae and Freddie Mac announced changes to their servicing
requirements for short sales. Please see below for some key changes that
all parties involved in a short sale should be aware of. These changes
to all Fannie Mae and Freddie Mac short sales; with an offer and
without an offer.
Title Transfer requirement change:
- The buyer is prohibited from selling the property for any sales price for a period of 30 days from the date of the
- After a 30 day period, and until 90 days from the date of the deed
the buyer is further prohibited from selling the property for a sales
price greater than 120% of the short sale price.
Whether buying a single-family or multi-family home, the prospective homeowner
must carefully review the property and perform the necessary due diligence
before buying, to ensure there are no buried and leaking underground oil tanks
on the property.
A buried and leaking underground oil tank brings with it immense liability
and very often a large cleanup bill for the homeowner. Homeowners are
responsible for leaking oil tanks on their property, and the Navigation Law, §
181(1), imposes strict liability (
With record-low interest rates potential home buyers are seeking
to buy and current homeowners are seeking to refinance. But low appraisals are making it difficult or
even impossible for some borrowers to take advantage of this boon in record-low
The problem stems from the fact that home prices have plummeted
even further than first anticipated, as wells as laws and rules enacted by
legislators and lenders in the wake of the financial crisis which seek to eliminate
inflated appraisal valuations and improper pressures on appraisers as seen in the
housing boom have now resulted in an “over-correction” or unnecessarily
Shortening Loan Terms
The New York Times
By VICKIE ELMERPublished: June 1, 2012
LOW interest rates are making it easier for homeowners to reduce theirmortgagepayoff times considerably.
a third of those who refinanced in the first quarter cut the duration
of their mortgages to 15 or 20 years from 30, according to a recentrefinancing reportbyFreddie Mac. The 31 percent
who shortened their terms represented the second-highest level since
2002, when 35 percent took out shorter-term
get a home inspection. Most Contracts of Sale provide for the house to be sold "as is." A home
inspection costs about $450 and will reveal structural defects and needed major repairs.
2. Know the neighborhood. It is advisable to visit the neighborhood at different times of day and talk to
realtors and neighbors. The more you know about the neighborhood, schools, traffic and nuisances, the better.