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Freddie Mac 30 day late rule, anyone ever got an exception?

Posted by Pam Graham on February 2, 2012 at 3:08am in Short Sale Discussions

I posted this in the Freddie Mac group as well:

I have a short sale with AHMSI, Freddie Mac is the investor. We have been told that per Freddie's guidelines, they have to be 30 days late on their mortgage. They are not late, their hardship is that they got their orders from the Navy to move April 25th and are trying to sell now. Once they move, they can't afford both and will be taking a $600 per month pay cut. Has anyone had Freddie make exceptions to this rule? They want to continue to pay their mortgage for as long as they can but they want to get the short sale started soon too.

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Tags: 30, amhmsi, day, freddie, late, mac
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Replies

  • Jeff Payne February 2, 2012 at 7:31am

    Pam, yes you can get an exception, they have a hardship and once they move they will  have to pay for 2 places to live. You will have to show that they are in immenent danger of default.  Never say never and make the best case that you can for your customer, especially those that serve our country!

    • Pam Graham > Jeff Payne February 2, 2012 at 9:44am

      I called Freddie and yes they will make the exception but I was told that since the sellers are not having financial difficulties now, they don't qualify even though the have their orders to leave in April and then their hardship will become financial then. Even if they missed a payment right now there's still not a hardship in the eyes of the lender. Makes no sense to me. It's gonna happen and then the lender won't have any payments coming in. UGH!

  • Michael Hayley February 2, 2012 at 4:46am

    There are a lot of other conversations on this forum on this issue. You'll want to read up.

    My opinion: you'll waste a lot of time trying to get around this "rule" and it might harm your odds of success. Many lenders require 30-day late at least to negotiate,  Wells and FHA come most to mind. 

    You can say "as a licensed real estate professional, I can never advise you to be late on your mortgage. There are consequences for that and these include a drop on your credit standing and the possibility of a foreclosure action. Your lender's servicer has said that you must be late. In my experience, many lenders have this same requirement. Its completely your decision". 

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