Difficult Shortsale
I'm currently working with a homeowner who has agreed to work with me on a short sale. FMV: 107,000. loan payoff: 95,000(85,000-loan,4,000-past payments,4,800-hud assist,1,200-misc. fees). Homeowner has filed for bankruptcy before we met and has allready recieved assistance from hud to make her previous 3 payments. Nutter's loan mitigator is telling me that in order for this shortsale to take place the hud assistance would have to be paid off before a shortsale and that the bankruptcy would have to be extinquished. My question is how can this bankruptcy be extinquished when the owner has allready been given a payment schedule? And, why should I re-pay the hud assistance before even knowing if they are going to discount the property where I want it? Is the bank just being difficult? What steps should I take?
The partial claim is secured by a second mortgage against the prperty, and the borrower has signed a promissory note, as well. (may be different in Texas)
I don't have to time to research the issue of whether the HUD assistance must be repaid as a condition of PFS consideration.
Bankruptcies are not necessarily extinguished, but they may be dismissed, discharged, converted, or withdrawn.