Good News for Some Foreclosure Victims from Fannie and Freddie

There is good news for some foreclosure victims. It will benefit those who have handed over their deed to the bank because of money problems or those who have resorted to short sale so as to skip foreclosure. They may not now have to hang around for the usual four or five years to again qualify for financing to purchase another house. Instead the waiting has been brought down to two years.

Fannie Mae in a note to lenders dated 14th April said that it is climbing down from its previous stand that disallowed applicants for housing loans who have taken part in short sale or deed in lieu of foreclosure from getting a new loan for a long stretch of time. The new guidelines will come into effect from 1st July. Those borrowers who have opted for short sale as under the HAMP plan of the Obama government would also be eligible for a fresh mortgage within two years.