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FHA Short Sales in Springfield MO-- Part 2

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Real Estate Agent

FHA SHORT SALES IN SPRINGFIELD, MO

As I stated in my previous post FHA Short Sales in Springfield MO,  FHA short sales are likely here to stay in the Springfield/Ozark/Nixa/Republic market area for some time to come just due to the sheer number of FHA loans made over the last few years combined with falling home prices.  

HOW DOES AN FHA SHORT SALE WORK?FHA Short Sales in Springfield MO

In many short sales, the process can seem very opaque. The lender can ask for conditions and documents that may seem completely arbitrary.  The beautiful thing about FHA short sales is that the process is very regimented and streamlined.  That doesn't mean it always goes fast, but comparatively speaking, FHA short sales can be among the easiest to complete.  In fact, you can view the complete guide to an FHA short sale here (you will need Microsoft Word or a compatible program to view the document).  Here's the short version though:

  1. Hire an expert Realtor. If you're located in the Greater Springfield, MO area, call me at 417-234-8198.
  2. Contact your lender to apply for the FHA short sale. They will have a formal set of documents which must be filled out.
  3. Provide all income and financial documents required by the lender.
  4. After receiving all of the above documentation your lender will order a title history of your home as well as a new appraisal of the home. The appraisal is very importatnt because the value of that appraisal will dictate the price your home must be listed for. 
  5. Once all of the above information is recieved by your lender they will "underwrite" your request similarly to applying for a new loan.In this case though they are considering your request to be released from your loan as opposed to lending you new money.
  6. If your request is approved the lender will send me/you a document called an "Approval to Participate".  this is your golden ticket!  It tells you how much to list the home for and the minimum proceeds FHA will accept for the home. 
  7. Now we go find a buyer willing to pay the price FHA requires!
  8. Once we have a buyer who has agreed to pay an amount that nets FHA the amount theyw are willing to take, we submit that offer to your lender for final approval.  The lender confirms that the offer will indeed net the required minimum proceeds and issues a final approval.  
  9. Now we go to closing and you get freedom from a burdensome mortgage!  Plus, the FHA will potentially pay you as much as $1000 to complete the short sale!

Obviously, this is a greatly simplified version of events. Over my next few posts I will go through the process in much greater detail.  However, in the meantime, if you are condsidering an FHA short sale in Springfield, MO, Ozark, Nixa, Republic or any of the surrounding communities call me!  I have performed many FHA short sales and can help you through this process and get your life back on a positive track.  

This article was also posted on my website blog.

Posted by

Jim Stewart
REALTOR®
RE/Max Solutions
1715 James River Rd
Ozark, MO 65721
417-234-8198
www.JimStewartHomes.com

Real Estate In Ozark Mo

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