Seller has FHA loan

I received approval on a short sale today where my seller had an FHA loan.  There is nothing in the approval letter stating that the deficiency is waived and the bank (HOMESTREET0 states that their  standard letter is all they issue.  Anyone have any experience with this?  Thanks!

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Permalink Reply by Short Sale Superstars LLC on May 28, 2013 at 12:37pm

Rojane,

        If the property went through the Pre Foreclosure Sale Program (FHA SHORT SALE) they should not be pursuing a deficiency judgment. If you have any questions you should reach out to HUD for confirmation that they do not pursue if a Pre Foreclosure Sale Is completed successfully.

Hope this helps.

[email protected]

310-564-6389

www.ishortsalenow.com

Permalink Reply by Minna Reid on May 30, 2013 at 4:31am

It is FHA policy to not pursue deficiency if the sellers cooperate in good faith with the PFS. http://limteam.typepad.com/files/mortgagee-letter-08-43-1.pdf -  Mortgagee Letter 2008-43 - see section  P.

Permalink Reply by James Miner on June 3, 2013 at 9:35am

The info you are looking for is in the PFS documentation that is sent to the seller (as well as yourself, if you are the negotiator), it is stated the FHA does not pursue for the deficiency.  Pages 5 & 15.

Have good day.

Jim Miner

Permalink Reply by RoJane Maybee on June 3, 2013 at 10:09am

Got it and thank you!!

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