A short sale is a valuable alternative to foreclosure when a home retention option is no longer feasible. As lenders engage in short sale transactions, the government-sponsored enterprises clarified existing requirements and introduced a new uniform set of minimum response time frames for working with struggling homeowners who are eligible for Home Affordable Foreclosure Alternative (HAFA) short sales and short sales processed in accordance with Guide Chapter B65, Workout Options.
In Freddie Mac’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-9, the new requirements leverage communication and response time frames established under the Servicing Alignment Initiative. To facilitate efficient short sale transactions and help expedite struggling homeowners' transition into more affordable housing, minimum time frames are provided for the following stages in the short sale process:
- Acknowledging borrower response packages
- Responding to purchase offers
- Offering and receiving counter offers
Lenders and servicers must comply with the new minimum communication time frames for all short sales, as detailed in Guide Bulletin 2012-9, for new borrower evaluations conducted on or after June 15. However, you are encouraged to begin implementing the new requirements sooner.