FHA Shortsale
Hi All,
I'm relatively new to the short sale game. The indirect feedback I've gotten on trying to do a short sale on an FHA loan is that it's very hard to do and not worth the effort.
Has anyone had experience doing a short sale with an FHA loan? Any advice or suggestions would be greatly appreciated.
Thanks and have a great day.
FHA has very specific criteria for a short sale all of which must be backed up with a lot of paperwork. Other than the paperwork, it works pretty much like any other short.
One last thing, FHA will only discount up to 82% of the BPO.
Eligibility for FHA pre-foreclosure Short Sales will be determined using the NET PROCEEDS, which must be 82% of the "as-is" appraised value.
Also,
The ratio of the appraised value to outstanding mortgage indebtedness must be greater than 63%.
Dmitry.
I love doing FHA short sales BECAUSE their are more rules. You just gotta know the system better than the idiot Loss Mit rep on the other end of the phone.
C- :-o :-o
Don't try to short sale an FHA mortgage in a day if you don't know what you're doing. There is a lot of BS to go through. I've had decent luck getting properties shorted without ANY paperwork! That is a hundred times as easy as FHA mortgages.
I wouldn't rule them out but there are easier short sales out there. Sometimes you may make more out of these because others are stearing clear.