Effective August 1, 2013, shorts sales will have longer on market times. Homes with loans through Fannie Mae and Freddie Mac will now have to be on the local MLS (Multiple Listing Service) for a minimum of 5 days if they are to be sold short. This 5 day interval must include at least 1 weekend. This is a big improvement in the old practices.
I have seen short sales entered into the MLS in the morning and have an accepted offer by lunchtime. Many buyers simply can’t react that fast and were aced out of the market. The new timetable will allow more buyers to view and write offers on short sale homes. This should improve sales prices as more buyers bid on the homes.
I applaud Fannie and Freddie for the new rule. Allowing more buyers into the short sale market should level the playing field for everyone.