FHA Short
Hi all,
I found a nice property thats in good condition. FMV is about 144k. Its an FHA loan and seller is behind 8 mos (Monthly payment is 1053 piti). 2600 in late fees/attorney fees. Balance on first is 131k. It looks as if HUD has agreed that if seller paid the 2600 they would issue a non-interest loan for the back payments of 8k. Is this just a forebearance, loan modification, or what is it?
FMV 144,000
1ST BAL 131,000
BACK PAY OWED 8000
ATTORNEY FEES 2600
I know FHA will only short down to 83% but Do you think they would be willing to short this? I don't know if they would because the house is in pretty good condition and in a nice area. If they won't I'm thinking this may be a better sub-to candidate.
you should definately try the short - get your paperwork in order and don;t forget new carpet.
If that fails, then your idea to Sub2 is fine, but your profit potential is way under my standard - there'd have to be a bigger reason fro me taking on this property. If the FMV is right on; you couldn't use a realtor to sell the house as you'd have to go to closing with cash.
push for the short -