The HUD program is
known as the Pre Foreclosure Sales Program or PFS for short and the General
Guidelines are:
- The West Sacramento short sale must be an owner occupied sale
- Must Be an Arms-Length
transaction
- Must be an as-is sale
- HUD allows for a 1% seller
credit for the buyers closing costs if they are getting a new FHA loan
- HUD will allow $1,000 relocation
assistance to the mortgagor. In the case of loans serviced by Bank of
America the amount could be as high as $4,000 under a separate settlement
between HUD and B of A.
- HUD allows only $1500 towards
the release of junior liens - which could be a sticking point depending on
the amount of the second if there is one
- HUD also requires the borrower
to be 31 days or more delinquent on their mortgage at the closing to be
considered. At the same time the guideline clearly states that, and I
quote, “Under no circumstances should the mortgagor be encouraged to
default on their loan for the purpose of participating in the
Preforeclosure Sale Program”. Go figure…
- HUD does look for hardship
documentation of either a reduction in income or increased expenses
HUD also has an odd
format for accepting a West Sacramento short sale. If the offer is received in the first 30
days HUD requires a net of 88% of Fair Market Value. 86% in the next 30 days
and only 84% if an offer is not accepted until the property has been on the
market 90 days. It is truly an odd formula but it is what it is.
Now nearly every West Sacramento Short sale is different so
it is always best for us to review your particular situation in person.
To get a better idea of when your West
Sacramento homewill be worth what you owe, log in to www.shortsaleandloanmod.info for
a free estimate or call me today for a free no obligation consultation or for
the latest West Sacramento short sale information. Call
me today and sleep better tonight; you’ll be glad you did
No comments:
Post a Comment