Starting September 2010, this program gave owner-occupied buyers 15 days to buy homes before investors can get into the offer process. Last year I was seeing investors with all cash swooping in on prime real estate and winning the contract while interested first time buyers were unable to get a toe-hold in the home buying process.
I think this program will let the number of owner occupied buyers rise up again.
Hot off the press from Mortgage Servicing News * (7/10 issue), Fannie Mae closed 17,000 short sales in the 1st quarter of 2010 and Freddie Mac closed 9,600. With approximately 1/3 of a MILLION homes in some stage of foreclosure that means only 8% were closed by these two entities. Some areas the amount of short sales is well over 30% which is a huge disparity from the 8% stated as closing successfully and the 30% that are attempting to close.
One change that might improve things is the two entities are expected to have the Home Affordable Foreclosure Alternative (HAFA) program up and running by August 1.
I, for one, will be happy if the short sale process actually speeds up. The battles that ensue with short sales have left a lot of bloody people on the playing field (sellers, buyers, agents, etc.).
*article titled – With Tweaks to Programs, Short Sales Could Boom Now