DENVER BUSINESS JOURNAL - Starting Aug. 16, a new rule imposed by Federal National Mortgage Association will make it more difficult for would-be home buyers who have had a short sale in the past to buy a home.
The Federal National Mortgage Association, more commonly known as Fannie Mae, will extend its mandated waiting period to qualify for a conventional home loan after a short sale from two years to four years.
Fannie Mae (OTCQB: FNMA) announced the rule about "significant derogatory credit events" in July. These events include bankruptcies, foreclosures and short sales.
Short sales occur when the mortgaged home is sold for an amount less than the balance left on the mortgage.
The rule does make exceptions for those who can prove that a short sale occurred because of extenuating circumstances, said Denver mortgage lender Andy Jorgensen.
Read the full report on the Denver Business Journal: http://bit.ly/V14urD.
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