A Little Known Fact About Bellevue Short Sales

By
Real Estate Agent with Homes Northwest

Bellevue WA – Sometimes it seems like short sales are tough. “Don’t try to short sale your house. Short Sales never go thru”, people tell you.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

You see, we’ve spent the last few years figuring out all the guidelines for short sales.

If the loan being shorted is an FHA Loan, VA Loan, Fannie Mae Loan, or Freddie Mac Loan, then the guidelines for the short sale are different.

In this case, the loan being shorted was an FHA loan. Here’s what happened.

FHA puts out a letter called “Mortgagee Letter 2008-43.” It details exactly how the lender handling a short sale on FHA’s behalf is supposed to negotiate on a short sale.

This letter is 16 pages long and gives them specific directions on how much to pay agents, what percentage of the appraisal they can accept, etc.

(If you’re doing an FHA short sale, then Google “Mortgage Letter 2008-43.”)

Because of a prior horrible experience on another FHA short sale, we had studied up on the FHA short sale guidelines. Bottom line, we know a little bit about FHA’s rules for short sales.

The problem was that this short sale negotiator didn’t want to follow the rules! Instead she made up her own rules!

She told me that the buyer and seller had to split the cost of the title insurance.

The problem is that on page 12 of the Mortgage Letter, it says that they are allowed to approve a file paying the standard title insurance costs.

In the area where the property was selling, it was standard for the seller to pay for the title insurance. Because of that the buyer wasn’t willing to pay the cost and threatened to back out of the deal. Click HERE to continue reading.

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Topic:
Real Estate Market Trends
Location:
Washington King County Bellevue
Groups:
Short Sales Specialists
REO's & Short Sales
Short Sale
Tags:
avoid foreclosure
bellevue short sale
paul e nelson real estate
negotiations
short sale process
bank short sale
town and country real estate

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Paul Nelson

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