The regulator for Fannie Mae and Freddie Mac streamlined their foreclosure prevention programs in order to make it easier for troubled homeowners to sell their homes for less than what they owe the banks.
Fannie Mae and Freddie Mac, the government-owned mortgage financiers, will now be required to align their separate foreclosure prevention programs into one, the Federal Housing Finance Agency regulator said on Tuesday.
The regulator said this would help banks to quickly qualify eligible borrowers for a "short sale," where a bank accepts less than the balance owed on the property.
The government-owned companies will offer up to $6,000 to second lien holders to expedite a short sale, the regulator said.
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