Short Sales With FHA
I just heard that FHA will no longer work with investors to do short sales. They now only work with realtors. I live in Colorado, has anyone out there heard this? [ Edited by bsquare45 on Date 12/04/2004 ]
I just heard that FHA will no longer work with investors to do short sales. They now only work with realtors. I live in Colorado, has anyone out there heard this? [ Edited by bsquare45 on Date 12/04/2004 ]
Are you asking about a preforeclosure sale, a preforeclosure short sale, or an REO sale?
I know that FHA PFS and PCSS criteria favors broker participation.
A preforeclosure short sale.
According to the "Application to Participate" form (for FHA pre-foreclosure sales), a condition of participation in the program is:
"promptly list your property with a licensed Realtor who is unrelated to you"
Good luck,
Jules
i dont get it, why are you saying that FHA wont work with people on short sales?? just because they say you have to list with a realtor doesnt mean they dont do short sales. it only means that the lender wants to make sure you tapped every resource available to try to sell your house before they take less than whats owed. i believe in some short sale packages they require to see a listing agreement with a realtor to see if you did try the MLS.
if they require it, find a realtor and have the realtor list it and mark it pending. you now have your listing agreement.
or am i wrong.
amynewbie
I did an FHA short sale where the homeowner had it listed for 120 days at the payoff value and the listing expired. I began working with the 1st and 2nd lienholders after the listing expired and got short sales on both.