In an effort to reduce short sale fraud, Freddie Mac will require parties involved in a short sale to sign affidavits that will make them liable for any negligent or intentional misrepresentations in the transaction. The new requirement will official take effect on January 1, 2012.
“With this change, you will have more information to identify potential mortgage fraud and a clearer understanding of the intent of all parties involved in the real estate transaction,” Freddie said in a statement announcing the rule changes to mortgage servicers last Friday.
Freddie Mac is also eliminating a previous requirement that required borrowers who are more than 120 days delinquent to list their home for sale before becoming eligible for a deed-in-lieu.
The new rules also include efforts to help mortgage servicers speed up the loss-mitigation process.
View the official announcement from Freddie Mac
How These Changes Affect You
If your are currently in a short sale situation, contact HSC to find out how these latest changes from Freddie Mac will affect you.
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