FHA Short Sales can be difficult to complete. FHA Short Sales abide by very strict HUD guidelines that can make navigating an FHA Short Sale as risky as navigating thru a mine field without knowledge of where the hot spots lay.
What is an FHA Short Sale ?
Among the many programs and mortgage assistance options that HUD offers for FHA Loans a common form of assistance offered is FHA Short Sale Assistance. FHA stands for the US Federal Housing Administration which is a part of HUD, HUD stands for Department of Housing and Urban Development. HUD provides mortgage insurance for FHA-approved lenders therefore have a big say in what is or is not allowed in FHA Short Sales. FHA loans are normally given to first-time home buyers that cannot afford the conventional 20% down payment. Typically with FHA you can obtain a loan with as little as 3% down.
FHA Short Sales like conventional Short Sales is the sale of real property that does not generate enough proceeds to pay off the loans recorded against the property due to the subject property being underwater. An FHA Short Sale requires the approval from HUD , HUD will allow a borrower to sell their home for less than what is owed and agrees to accept a certain percentage of the homes appraised value.
FHA has very specific set guidelines as to what “net” they will allow the mortgage servicer to approve. To learn more about specific guidelines regarding FHA Short Sale Help you can read :
Because FHA Short Sales follow a strict set of guidelines and regulations its important to know what to look out for and avoid before even starting the FHA Short Sale process.
Things to Look out for with FHA Short Sales/FHA Short Sale Help ?
- If the Loan is more than 40 payments delinquent the borrower is only eligible for home retention options.
- FHA requires a home to be on the market for 15 days before an offer can be accepted
- The homeowner must be in default, or soon be in default, as a result of an adverse and unavoidable situation.
- The property cannot be vacant for more than 12 months, If the home is vacant for more than 12 months you aren’t eligible unless you have been relocated for employment. It is possible to request that FHA make an exception to this rule by reviewing a variance. variances are approved on a case-by-case basis.
- Rental properties are not eligible but variances may be made for rental properties if you can show that the property was not purchased as a rental, that it was not used as a rental for more than 18 months, and that the reason for vacating was related to the cause of default (for example, job loss or transfer, divorce or death).
How Can I Obtain FHA Short Sale Help ?
- Call Us For Free Consultation 888-558-5856
- Complete the Form Below to get an Email and Phone Call from our Team
FHA Short Sales : Short Sale Negotiation Assistance by email@example.com