FHA Short Sales in West Sacramento

Let’s talk about FHA shorts sales in West Sacramento. West Sacramento FHA Short Sales are a little different than traditional or HAFA short sales in that they are overseen by the Department of Housing and Urban Development or HUD. HUD rules and guidelines are unique.

  

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