Fannie Mae this week established new timelines to expedite residential short sales as required by its regulator, the Federal Housing Finance Agency.
"Expediting short sales and avoiding foreclosure is in the best interest of borrowers, communities and taxpayers," said Fannie senior vice president Leslie Peeler.
"By requiring quicker reviews and improving servicer reporting requirements Fannie Mae will make the process more efficient and transparent" she added.
The new timelines cover the evaluation of the borrower's application to engage in a short sale as well as response times to offers and counter-offers to purchase the property.
"If a revised offer to purchase is received in response to a counteroffer, the servicer must provide a response within 10 business days," the new guidance says.
FHFA recently directed Fannie Mae and Freddie Mac to be more responsive to troubled homeowners seeking a short sale or buyers seeking to purchase the property.
Many short sales transactions are dogged by long delays and lack of communication.
