THE DIFFERENCE BETWEEN DELEGATED AND NON DELEGATED LOANS

Who makes the decision on a short sale and why is that vital to you?

The truth is quite shocking but about 68% of loans are owned – or at least insured – by the federal government, through Fannie Mae & Freddie Mac, all other loans are owned by Wall Street Firms, Hedge Funds, Pension Funds and other investors.

Why is that so important? Because most of the loans owned by the federal government are NON DELEGATED LOANS. What that means to you? The bank cannot make a decision on the short sale but has to submit the entire package to the government agencies for the approval and that translates to you in what?????????????? Way longer waiting period before closing, sometimes several months.

A DELEGATED LOAN, in the other end, is a loan owned by the bank that service it or by a private investor and – generally speaking – if the offer is no lower than 8% to 10% of the appraised value, the bank negotiator can make the decision and approve or deny the sale without consulting the investors or the bank assets manager.

What that means to you??????????? It means you’ll have a response on your short sale offer way, way quicker.

Here the links to find out if Fannie or Freddie they own your mortgage

https://ww3.freddiemac.com/corporate

http://www.fanniemae.com/loanlookup

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