I've got a Seller who has an FHA insured loan and we are starting the process for acceptance into the FHA Preforeclosure Program.
I just found out that there is a judgement against the Seller for around $2k.
FHA states that they will contribute up to $1500 to the release of junior liens after the $1000 incentive is applied.
Does anyone know if a) a judgement is considered a junior lien in FHA eyes and b) is the $1500 based upon a percentage of the amount owed, or is it a flat $1500 no matter what?
And yes, I know that a judgement can be attached to property. In this case it is attached to the house. But I also know that banks can be discriminatory against purchase money liens and personal judgement liens.
Tags:
Generally, HUD will release 2,500 total to additional liens or judgments. This may depend on how much the lender is NET'ing. Hope this helps!
Brett@ishortsalenow.com
Does anyone know if a) a judgement is considered a junior lien in FHA eyes - Yes.
Is the $1500 based upon a percentage of the amount owed, or is it a flat $1500 no matter what? - Flat, but this would come in the form of a reduction in the net proceeds to the Servicer/FHA.
Thanks. Just what I thought, but wanted to make sure.
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.