(SkyNewswire.com)---LOUISVILLE, Ky.--BGS3 is once again expanding its operations in response to recent developments in the world of short sales. Fannie Mae - FNM (NYSE), the Federal National Mortgage Association, has recently announced changes to their policies on bankruptcy and foreclosure, as well as a new policy addressing pre-foreclosure sales. Both changes affect all loan applications dated on or after August 1, 2008. These changes explain in detail the impact that the three options have on a homeowner’s borrowing status.
BGS3, through their short sale system, is helping homeowners avoid additional years of credit woes. Charles Cease, Chief Operations Officer at BGS3, states, “Depending on the course of action that a homeowner takes, the differences and ramifications to the homeowners future borrowing status are substantial.” Under the new foreclosure policy, the time period a borrower must take to rebuild his or her credit has been extended to 5 years, and several new requirements now apply after 5 years and up to 7 years after the completion date.
This makes foreclosure more damaging to a homeowner’s credit worthiness than bankruptcy, which requires a 4-year time period applied from either the discharge date or the dismissal date. Even in the event that the homeowner offers a deed-in-lieu of foreclosure, it still requires a 4-year time period before they are eligible to get a conforming loan again. A deed-in-lieu of foreclosure also includes additional requirements applied after 4 years and up to 7 years following the completion date.
In the event of a pre-foreclosure short sale, where the homeowner is willing to let their house sell for less than the amount owed, Fannie Mae only requires a 2-year time period for reestablishing credit, with no additional requirements. Kenneth S. Lewis, Co-founder of BGS3, states, “We’ve known for quite some time that this news was coming. These changes made to Fannie Mae’s policies clearly express why foreclosure is worse for the homeowner’s credit than bankruptcy, or a deed-in-lieu of foreclosure, and why a short sale is a far better alternative to either. The cutting edge system that our team here at BGS3 has put together continues to lengthen the reach to homeowners who have gotten behind on mortgage payments that may need the benefit of a short sale. Our unwavering commitment continues to be that the homeowner never needs to pay for the help.”
Contacts
BGS3
Cindy Thompson, Administrative Director
Direct, 1-502-301-8865
Office, 1-800-915-1988
cindyt@bgs3.com
www.bgs3.com
www.program3648.org
|
