I'm sure most of you have seen this already, but for those who miseed it.

The news was a little grim about the jobs market, as continuing jobless claims rose more than expected.  The Department of Labor reported that those who are continuing to claim unemployment rose by 101,000 to 4.61 million, which was well above most analysts' expectation of 4.5 million.  It also marks the highest level of jobless claims since November 1982.

President elect Barack Obama warned today that a "bad situation could become dramatically worse" if Congress does not approve his upcoming stimulus package.  President elect Obama did have some positive comments: "The very fact that this crisis is largely of our own making means that it is not beyond our ability to solve," he stated.

New FHA Guidelines Make Short Sales Easier than Ever.  As if increased minimum wage laws and ultra-low interest rates weren't good enough, short sale investors will be downright delirious to learn about changes to FHA laws set to begin in 2009. On December 24th, 2008 the Department of Housing and Urban Development (HUD) released "Mortgage Letter 2008-43" this is a powerful boon to every short sale investor in the nation.

Here are the major changes coming soon to a FHA/HUD foreclosure near you!

1.  Elimination of the clause calling for 63 percent or greater property appraisal versus debt. Now properties can appraise at any value and still be eligible for the program.

2.  Increased Net. Instead of the former 82 percent net based upon appraisal value the new limits will be 88 percent if sold with 30 days, 86 percent if sold within 60 days and 84 percent thereafter.

3.  Increased Closing Costs on Short Sales. Although not a lot - FHA will now allow up to 1 percent of closing costs rather than the former zero.

4.  Increased Seller Incentives. Again, although not a lot this will at least allow sellers a reasonable down payment toward a rental home by putting up to $1,000 in their pocket at closing.

5.  Increased Lien Allocations. Junior liens up to $2,500 are now allowed - just one more tool that helps sweeten the pot for short sale investors interested in pursuing FHA/HUD homes.

6.  Removal of Repair Limitations. This is one change that could potentially add up to thousands depending upon the required maintenance on the home. This opens the doors to many homes that would otherwise be ignored due to excessive damage.

7.  Exceptions to Non-Owner Occupant Requirements. This is on a case by case basis but opens to the door to rental properties formerly excluded from the program.

Charles Gardner

Short Sale Investor