Did You Know...FHA Preforeclosure Short Sales

Here are some snippets from the FHA Preforeclosure Short Sales General Guidelines...

Do you know that the bank must provide a copy of the appraisal to the homeowner, sales agent or HUD upon request?

Did you you know that the property must be owner-occupied, no walk-a-ways or investment properties?

Did you know that if the owner left the property due to his hardship, then he may still be eligible unless it was rented for more than 18 months?

Did you know that HUD will allow all reasonable costs of the sale including up to 6% sales commission, local transfer tax stamp and other customary closing costs?

Did you know that the outright sale of the mortgaged property must be an arms length transaction? theat means that the buyer and seller cannot have a prior relationship (mother, brother, son, etc) or a business relationship and that they can not have any financial agreement outside the closing?

Did you know that HUD allows up to 1% of the buyer's mortgage amount for closing costs to be included in the "sellers costs" on the HUD1 for all transactions that inivolve a new FHA-insured mortgage?

Did you know that you have 6-8 months to close the short sale once you receive the Authorization to Participate letter...then it goes back to foreclosure.

Cynthia Brower

Cynthia Brower

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