I have a situation where the seller's investor is HUD and the buyer in the short sale is seeking FHA financing which will make the investor on that side HUD also.
The seller purchased the home for 125K last summer. The buyer's offer on the short sale is $121K
The appraisal currently ordered by HUD for the short sale came in at $96K. The house is in good shape and almost like it was when the seller purchased it last year.
So...if the short sale is approved, will the buyer get HUD approval on their FHA financing on the very same house that appraised for less than what is currently being offered?
Anyone ever experienced this?
Should I start looking for a cash/conventional buyer?
That's an idea. The package has gone thru underwriting already and a variance was submitted to the investor last week.