Towards the end of 2007
and 2008 there were a great number of homes sold that were guaranteed by FHA. With that said since 2007 home values have
decreased considerable and the current economic climate has radically changed.
With that change has come a greater number of West Sacramento Short Sales where FHA is the investor. Why is this important
to know?For starters FHA has their own set of rules and as a
government agency they rarely stray from those rules.
A couple of the nuances
that cause FHA to be so different is the fact that FHA does not allow walk aways. The property
must be owner occupied. And when I say occupied, with the exception of very
rare circumstances, I mean not just recently occupied but the seller actually
having a physical presence in the property. The seller must also be in default,
have a proven financial hardship that was out of their control, meaning by no
fault of their own they have a negative at the end of the month and cannot be
involved in a “buy and bail” scenario where they bought one house and are short
selling the other.
FHA will also only allow $1500 to a second
lien holder and the maximum the seller can get for relocation assistance is
$1000.
With an FHA Short Sale, FHA will first issue an Authorization to
Participate also known as an ATP. Once the ATP is issued the West Sacramento Short Sale offer must be
approved as well.
FHA short sales will take 30 – 60 days
longer than a traditional West Sacramento Short Sale so be prepared.
Also, unless you have an offer, the file will not even be considered if the
sale date is within two weeks of the West Sacramento Short Sale being initiated.
As you can see FHA is a West Sacramento Short Sale process all into
its own.
Is a West Sacramento Short Sale Right for Me?
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