Novad management consulting is the newest loan servicing contractor for other single-family federal housing Administration (FHA) loans as well as for home equity conversion mortgages (HECM ) also known as a reverse mortgage.
If your FHA Short Sale is declined due to the length of the delinquencies, there is not much that can be done. You can contact Novad management consulting to open up a HUD ticket and get a HUD councilor involved but it may not make a difference unless the mortgage servicer makes a tough decision to request a claim block.
In a recent transaction with a servicer known for servicing a large volume of FHA mortgages , the servicer submitted a variance after receiving a decline on a short sale that met all terms of the issued ATP. HUD declined the variance and responded: “Too late to consider an offer or a traditional Pre-Foreclosure Sale Program ATP marketing period. Need to foreclose out and attempt to convey.” This coming directly from Mike Wolff from HUD, a HUD counselor who specializes in reviewing Short Sale escalations on FHA mortgages.
Per HUD this is due to a crackdown on bad servicing, the mortgage servicers allow a property to get so delinquent the past due charges rack up through the roof and the total payoff increases dramatically then when the property is foreclosed or sold in a short sale the mortgage servicer is made whole again by HUD who has insured the loan. In the last years since the meltdown these circumstances have been hurting HUD and HUD can no longer continue to go through this and have decided to stop the bleeding.
In most cases when this happens the deal is lost, the only way for it to work is if the mortgage servicer agrees to a claim block. Meaning that when the property is sold the mortgage servicver is not made whole by HUD and paid back the amount of the deficiency.
If you have questions about an underwater mortgage, loan modification, foreclosures, short sales , Novad Reverse Mortgage Short Sale please call us at 888-572-8020.
For assistance or questions about HUD or Novad management consulting and escalation regarding this new inclination please fill out the form below and you will be contacted right away.