Several people wanted to be kept up to date with the happenings from my blog post on August 3rd. I won't rehash the details but here are the results.
We got FHA on the phone to find out what was going on. Turns out Midland Mortgage was just blowing smoke. Catching a guy in a technicality that doesn't really exist. Here is a quote from my senior negotiator after he talked with FHA.
"The folks at Midland are probably giving the run-around on this one...typical for Midland, they aren't exactly a peach to deal with (i.e. our Buckeye closing).
The property he is short-selling must be owner occupied - and he may have to prove that if the servicer wants to make him do so. As far as him having another FHA loan on his credit...there is no specific rule on that...and besides, how in the heck would Midland even know the other loan was FHA? It doesn't say who the investor is on a credit report !!! Something in this story sounds fishy.....I spoke w/ an FHA rep. and they don't know of a rule stating that either.
*Keep in mind, that per HUD rules, even on NOO (Non-Owner Occupied) properties that FHA can make exceptions if the property didn't start out as NOO"
So I talked with the real estate agent and we are on the case. The agent will start gathering paperwork and we will open the short sale file. This one will have some personal satisfaction when we get an approval letter and get it closed.
Just so no one is waiting for a quick update on that, the process could take 6 months or longer so it could be next year before we can throw this party.
Be Well
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