The Senate Banking Committee has set a hearing to examine the reforms next week
An improvement in senior home values helps drive the increase
The Federal Housing Finance Agency (FHFA) regulates Fannie Mae and Freddie Mac, two government-owned organizations backing most home loans in the United States. It has announced that new regulations will become effective on November 1, and the goal is to simplify the process of making a short sale. When such a transaction takes place, the mortgagee allows the borrower to sell their home for less than they owe on their mortgage as a way of avoiding foreclosure.
As the auction market at the courthouse steps for trustee sales has gotten more and more crowded, many investors are starting to turn their attention to the short sale market. The increased competition is causing prices to be bid up to levels where reward no longer makes as much sense as it once did for auction buyers.