short sale specialists: What is the FHA "Deficit Income Test"?
- 02/18/14 01:36 AM
Effective October 1, 2013, the new FHA PFS guidelines (FHA Mortgagee Letter 2013-23) separate borrowers into two categories: Streamlined & Standard. Borrowers applying through the “Streamlined” short sale program must be more than 90 days delinquent and meet additional criteria but do not have to submit financial documentation and do not have to prove hardship. The other category, however, “Standard” short sale borrowers must provide financial information and pass the Deficit Income Test. So what is this Deficit Income Test? According to Mortgagee Letter 13-23 , the Deficit Income Test “ …is calculated by subtracting total monthly expenses from total … (0 comments)
short sale specialists: Buying a Short Sale?
- 06/15/12 06:09 AM
In today's market, in many areas, it can be challenging to find homes for sale that are not either Bank owned or offered as a short sale. Short sale transactions have a bad reputation and rightly so. Who hasn't heard horror stories about short sales that take over a year to close and many never even make it to the closing table. Buying a short sale doesn’t have to become a nightmare, like anything else, a little due diligence goes a long way.
Effective October 1, 2013, the new FHA PFS guidelines (FHA Mortgagee Letter 2013-23) separate borrowers into two categories: Streamlined & Standard. 
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