Fort Belvoir and Pentagon Active Duty Military Homeowners
Benefit from Short Sale Assistance
This is good news for the military homeowners in the Northern Virginia area. We are a highly concentrated area for the military because of Fort Belvoir, the Pentagon, and Quantico Marine Base. When the orders are given, the move has to happen.
The federal government has stepped in and provided a new benefit for military homeowners who are PCSing, or receive Permanent Change of Station orders. According to the new release,
"Under the new policy Fannie Mae and Freddie Mac will not pursue a deficiency judgment or any cash contribution or promissory note from members of the military with a change in duty station for any property purchased on or before June 30, 2012. Service members must have a Fannie Mae or Freddie Mac loan to be eligible."
One of the most difficult part of a traditional short sale for the homeowners has been waiting for the short sale approval letter to see the terms that the lender is willing to accept. A lender can require a promissory note for all or a portion of the deficiency, can ask for a cash contribution at closing, or can allow the short sale to close with the possibility of later seeking the full balance from the homeowner. With this new program by the Federal Housing Financing Agency (FHFA), military homeowners will have not one, not two, but THREE less things to worry about when short selling their home.
Is it long overdue? Yes. But does it help now? Yes. Believe me, I get it. Here in the Washington DC metro area, many homeowners have a security clearance that must be maintained, and have the solid experience to help. Is it a blanket option for all mortgages? No. Your loan must be owned by either Fannie Mae or Freddie Mac.
So, the first step for military homeowners who want to do a short sale will be to check to see if your loan qualifies:
If Fannie Mae or Freddie Mac owns your loan, good! But, what about if you have a second mortgage? Then your second mortgage lender would still be in a position to negotiate their own terms for releasing their lien.
Full Press Release