FHA Short Sale Guidelines
Do you own an FHA or HUD insured home and want to do a short sale?
You must be at least 31 days delinquent when you sell the home.
You have to keep the house on the market for at least four months, possibly as many as six.
- The home must be owner-occupied, exceptions are made for death, divorce, unemployment, or job transfer.
- Realtor commissions cannot be more than 6%.
- You have to be pre-approved in order to be qualified for a short sale.
- There must be documentation proving your decreased income or inability to make the mortgage payments.
- HUD will reimburse the buyer for up to 1% of the mortgage as part of closing costs if the new mortgage is also FHA-insured.
- HUD will not pay for points, home warranties, or lender’s title insurance.
- All short sales must be “arms-length” transactions.
- HUD will pay the lender up to $1,000 if the sale is closed within 3 months from the date of application
- HUD will pay up to $1,500 for the discharge of secondary liens after the primary lender’s incentive has been applied.
- The borrower must not be encouraged to default on their mortgage in order to participate in the short-sale program.
- The property may not be an investment property
Give me a email me at email@example.com, or call direct 602-418-3645, if I can be of assistance.