Published 09/17/12

Changes in short-sale rules drive sales

Professor of Finance Peter Nigro, who follows mortgage giants Fannie Mae and Freddie Mac, tells the Providence Business News that the new eligibility rules regarding short-sales appear to be geared toward mollification of those in the government who are advocating for principal reduction.

He added that nearly important as the new guidelines "is the $6,000 cap on compensation for the holders of second and third liens, who in the past had held up short sales in an effort to reduce the size of the loss they would have to take."

NOTE: Some news sites require registration; some links may expire