FHA Short Sales

Comments(8)

• 
  BAMZ2nd December, 2003

  Hi Curt,
  
  Yes, it is possible. Your main efforts should still be focused on influencing the BPO. FHA will Short loans 82% of the BPO.
  
  Best of Success!
  
  BAMZ

• 
  TheShortSalePro3rd December, 2003

  Provided the Homeowner qualifies for short sale consideration, the mortgagee may agree to accept a NET RECOVERY (after costs of sale) from 82% to 87% of the confirmed, as-is value of the subject property.[ Edited by TheShortSalePro on Date 12/03/2003 ]

• 
  BAMZ3rd December, 2003

  Curt,
  
  Just so you know, the homeowner and or property have to qualify for a short sale.... no matter if it is an FHA, VA or an in house mortgage. Factors vary with each situation, but just keep after them.
  
  And yes, it a lot of cases you can get them to discount 82% of the BPO!
  
  Best of Success!
  
  BAMZ

• 
  cpifer3rd December, 2003

  Thanks Guys,
  
  I think the HO's have a good enough hardship case in both cases. I'm a little concerned about one of the because it is in such good shape. It may be a little tougher to justify a short.
  
  C-

• 
  BAMZ3rd December, 2003

  Just remember that things are keyed into the BPO. If you cant influence the BPO, you can still buy houses at a discount.
  
  If the house is worth $100,000 and the BPO comes in at $100,000, you may get it discounted to 82% of the BPO. You can pick up a ton of properties that way. Either rent them for keeps or Lease Option them! Even if the house is pretty, there can still be money made!
  
  Best of Success!
  
  BAMZ

• 
  3rd December, 2003

  I've read elsewhere in this forum that FHA shorts require:
  
  a. a listing agreement and
  b. owner-occupancy
  
  Does anyone know if the same are required for VA shorts?
  
  Also, has anyone been able to short an FHA property when the owner has alreafy moved out?
  
  Thanks in advance.

• 
  BAMZ3rd December, 2003

  Hi SDZ333,
  
  This is correct about FHA short sales. Due to the low discounts provided be VA, I always pass on them. So I am not sure if this applies to them or not.
  
  If the lender does not find out that the homeowner has moved out, it is possible to successfully complete a SS. One of the fastest ways that banks find out if the property is vacant is when investors call in for a short sale and blair it out! If you can dance around the issue, there is certainly hope!
  
  Best of Success!
  
  BAMZ

• 
  tomjerry20017th December, 2003

  Too, if you have a VA loan see if there is a 2nd that can be discounted instead. This recently worked for me. However, if there wasn't a 2nd I would have passed.
  
  Jim