A pre-foreclosure or a short-sale on a borrower’s credit report can mean the difference between them getting approved for a loan – or finding themselves without the ability to pass underwriting.
Understanding this issue, Fannie Mae is revamping its automated underwriting system, Desktop Underwriter (DU), to ensure lenders have enough flexibility during the underwriting process to approve borrowers who accidentally end up with a foreclosure on their credit report — when in reality, they went through a pre-foreclosure sale. …read more
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