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mtg2008 · 03-18-2009, 01:11 AM

Hi there,

I heard someone is buying a bigger house, and already in escrow, but she is going to short sale her current house at the same time. I found this is impossible. Her loan with the new house is FHA. It is already approved and in Escrow now. I wonder how FHA loan will allow someone to go shortsale on the current mortgage and approve the mortgage for the new purchase at the same time. I am thinking someone including the broker (mortgage broker) must be hiding the information.

***, do you think this is something that we can practice in this market, shortsale current underwater house, and buying a cheaper short sale house in a different neighborhood? Is this considered a fraud?

03-18-2009, 01:11 AM	#12 (permalink)
mtg2008 Senior Member Join Date: Aug 2008 Posts: 75 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Short sale and buy house question Hi there, I heard someone is buying a bigger house, and already in escrow, but she is going to short sale her current house at the same time. I found this is impossible. Her loan with the new house is FHA. It is already approved and in Escrow now. I wonder how FHA loan will allow someone to go shortsale on the current mortgage and approve the mortgage for the new purchase at the same time. I am thinking someone including the broker (mortgage broker) must be hiding the information. ***, do you think this is something that we can practice in this market, shortsale current underwater house, and buying a cheaper short sale house in a different neighborhood? Is this considered a fraud?