Short sale property is vacant

Freddie Mac indicates that in order to be eligible for short sale, the property cannot be vacant (without an applicable exception). The short sale package and offer is in the review cycle and I'm told the next step is underwriting.  I have not been asked by the lender if the property is occupied.

The property has been vacant for a couple of months.  I'd appreciate any thoughts or feedback on "applicable exceptions" or what your experience has been with successfully completing a short sale on a vacant property.  The property is not abandoned and is checked on daily by a neighbor and there is heat, water and electricity but it is vacant.

Thanks very much for your feedback.

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Permalink Reply by Kevin - Greenville, SC on March 17, 2012 at 2:44pm

Freddie Mac indicates that in order to be eligible for short sale. - Not true.


http://www.freddiemac.com/learn/pdfs/service/shortpayoff.pdf

Permalink Reply by Kevin - Greenville, SC on March 17, 2012 at 2:52pm

To recommend a Borrower for a short payoff, the Servicer must ensure that all of the following eligibility
requirements are met:
(a) Borrower requirements
The Borrower must:
1. Be experiencing or have experienced an eligible hardship
2. Be delinquent in his or her payments, or in imminent danger of default
3. Submit a complete Borrower Response Package (see Section 64.6 for a description of a Borrower
Response Package)
4. Be cooperative and allow access to the interior of the property for a Broker's Price Opinion ( BPO)
5. Have had the property listed by a real estate broker at a price based on a market sales comparison
using the as-is value with a 90-day marketing time frame
6. Make the maximum possible contribution toward any deficiency from the sale in cash and/or a
promissory note
7. Not have entered into a program or arrangement where a third party takes title to the property and
arranges a short payoff in exchange for a fee
8. Waive reimbursement of any Escrow, buydown funds or prepaid items and assign any insurance
proceeds to Freddie Mac, if applicable

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