Well, it's Springtime again and the season is filled with new beginnings!!!!
New flowers are springing to life and so is a new program benefitting those homeowners who are facing a hardship and have FHA mortgages.
The FHA Pre-Foreclosure Sales Program provides help for homeowners who have experienced a verifiable hardship that has forced them to fall behind on their mortgage payments. The program allows a Mortgagor in default to sell his home and use the sales proceeds to satisfy the existing mortgage note (even if the net proceeds are less than the balance on the existing mortgage note).
Some of the key elements of the FHA Pre-Foreclosure Sales Program include
•· Up to $1000 cash incentive to the mortgagor at closing.
•· Up to $1500 for junior lien discharge.
•· HUD allows reasonable cost of the sale including up to 6% Broker's Commission.
•· HUD allows up to 1% of Buyer's mortgage amount for closing costs to be included in the "Seller's Costs".
What's more??? This program also helps streamline the short sale process!! Once approved for the program, an FHA certified appraiser will complete a fair market appraisal of the home EVEN BEFORE YOU PLACE THE HOME ON THE MARKET!!! This helps alleviate the "guessing game" of short sale pricing!! Your Realtor will know EXACTLY what the listing price should be and how much your bank will accept for the short sale. In addition, since an FHA appraisal will have been completed on your home, your new buyer will be able to forego the charge of a new appraisal if they're utilizing FHA financing as well!!! Contact your Realtor for additional program details or visit HUD's website at www.hud.gov for additional information!!