In the fall Fannie Mae made it harder for a bank to foreclose on someone who’s unemployed.
All the rulings and edicts of the agencies that come down that slow down the banks’ foreclosure processes only make the case for short selling stronger. It’s a logical move.
This is yet another reason a bank would be open to a short sale – to avoid the growing restrictions and liability of a foreclosure.
Lenders have been instructed to postpone foreclosure proceedings for unemployed homeowners receiving financial help through Hardest-Hit Fund programs run by state housing finance agencies. The servicer cannot refer the mortgage loan to foreclosure sale for 45 days.
Luckily, if you’re behind on payments Illinois is one of the 19 states receiving funds from HFA.