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Has Anyone Successfully Completed an FHA Short Sale? Or accepted to FHA Pre-foreclosure?

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by Amynicole, Jul 27, 2012.

  1. Amynicole

    Amynicole LoanSafe Member

    Just wondering if any one has been through a successful FHA short sale and has insight to share??

    Currently I am working with a Short Sale realtor to try and get approved for FHA Pre-Foreclosure Program to short sell my home (A little background: Bought the house in 2007, owe 212K, house currently work 90K)

    The house is under contract with a cash-down/conventional loan buyer and the Lender has APPROVED my Short Sale Package, but it now needs to be appraised and approved by FHA...this is where I start to get worried/have questions. My Realtor says not to worry and that from here on out its just "following the rigid steps for FHA" but doesn't go into detail. I know I need to be living in my house for the appraisal and approval (which is troublesome because I REALLY need to move before my maternity leave is up which is in a few weeks) but other than that I am clueless.

    any one have any insight or experience in this process? Thanks!
  2. oldhousefool

    oldhousefool LoanSafe Member

    I was turned down by the FHA for the pre-foreclosure program. But I was already out of the house. I *thought* I was doing the right thing by moving out and renting it, but apparently not!

    I was with Bank of America when I went through my attempt. I didn't have a contract. I couldn't even get showings at the price I needed to be clear of the house. So I was a pre-approval type of situation ie. I would have had 90 days to get a contract or it would automatically revert to a D-I-L.

    I believe B of A was prepared to accept me into the program, but it was the FHA that turned me down because I had not lived in the house for over a year. B of A said their hands were tied and that they couldn't help me. I called the FHA and complained and they told me foreclosure was my only recourse. Thanks a lot!

    It only took 2 weeks for the FHA to come back with the denial, so you shouldn't have too long to wait before hearing an answer. If you're still in the house and you have a reason for needing to get out, I don't think you should worry too much. But who knows? They are the feds! If you're approved, you'll have to be behind by 31 days to get the thing fully done. Hang in there and stay behind your loss mitigation person with your mortgage company. They should be able to tell you when things are submitted, etc.

    Best of luck to you.
  3. Amynicole

    Amynicole LoanSafe Member

    THANKS! Yes, my realtor told me to definitely NOT move out of the house until FHA approves otherwise it's an automatic denial. There are so many rules that you need to follow for FHA its really hard. My mortgage company APPROVED my short sale and that should be the end of it, but instead FHA now also has to have their say...frustrating. I am more than 31 days behind, so i have that in my favor. We will see.

    I am hoping they don't take too long to come do the appraisal...that has to happen first before they approve or deny. Can't seem to get a time frame from my realtor because its so inconsistent with FHA its hard to say.

    Thanks again for your insight!

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