Approved for FHA loan What can I do?

**jeriel05** · 08-04-2010, 07:56 PM

Hi all,

Not sure if this is the right area to post this, pardon me if it's not.

Here is the situation:

I live in Illinois, My wife and I purchased a home right before the turn of the market. We purchased the home for $232,000 and it its now worth $164,000. We have a 80/20 loan and our lenders are Indymac/citi. We bought the house with 0 % down so there is no escrow there. We are Thinking of walking away from our home and are willing to take a hit on our credit.

Recently out of curiosity We went and tried to apply for a FHA loan. To my surprise today we got pre approved for $180,000. Now we are considering buying and bailing on our old home(if possible), but my question is can this be done with a FHA loan and what are the risk of doing this.

I am aware that in the state of Illinois lenders are able to collect deficiency.

Has anyone here succeeded with something like this? Thanks for any advice.

**Evan Bedard** · 08-04-2010, 08:51 PM

Recently out of curiosity We went and tried to apply for a FHA loan. To my surprise today we got pre approved for $180,000. Now we are considering buying and bailing on our old home(if possible), but my question is can this be done with a FHA loan and what are the risk of doing this.

I am aware that in the state of Illinois lenders are able to collect deficiency.

Has anyone here succeeded with something like this? Thanks for any advice.

Buying and bailing can definitely be risky business. I would definitely call a local real estate attorney to inquire about this situation to see what they have to say. They should provide you the initial consultation free of charge..

**jeriel05** · 08-04-2010, 09:24 PM

Originally Posted by Evan Bedard

Buying and bailing can deifnitely be risky business. I would definitely call a local real estate attorney to inquire about this situation to see what they have to say. they should provide you the initial consultation free of charge..

I have spoken to 3 different attorney's in my area, 2 of them said they saw no problems with it as long as I didn't lie on anything which I didn't. I was completely honest on my income, on how much savings we have, and our current home information. They also told me the only thing they could do is try coming after the new home but that they highly doubted that would happen because in order to do that they would have to buy the loan from the current lender, and I only gave a 3.5% down.

The third attorney advised to not do it because she thinks it's risky but did not want to get into details as to why. I really would like concrete advise as to why not to do this and the possible consequences.

**will3gross** · 08-12-2010, 03:11 AM

Home buyers who can make a house payment with no difficulty sometimes can't buy a house because they don't have the funds required for a down payment and closing costs. One solution to the problem is use a down payment gift assistance program, sometimes called a down-payment grant program.So by this way you can approve your loan soon.