December 16 the department of Housing and Urban Development released a mortgagee letter 09-52 explaining Short Pay Offs and Short Sales. Even though I've heard it's a long and arduous process surrounded by a black cloud some of my Realtor partners have asked me to do more research and find any open windows. As I find more information I'll post it and if some of you also find out more information please post it as well.. This could be a great opportunity..
I am going to copy and past word for word a section of the mortgagee letter for your review.
Date: December 16, 2009
To: All approved Mortgagees
Mortgagee letter 09-52
subject Short Sale and Short Pay Offs
Purpose This mortgagee letter provides guidance to lenders and underwriters regarding borrower eligibility when
- a previously owned property was sold for less tha what was owed(Short Sale), or
- there is Principal write down of indebtedness that cannot be refinanced into a new mortgage (Short Pay)
Effective Date: This guidance is effective immediately.
I will a link to the mortgagee letter so you may reference..
Have a great day everyone..