SELLERS' FHA SHORT SALE RELOCATION INCENTIVE BEING WITH HELD

My FHA Short Sale Negotiator with GMAC says that the Seller's Relocation Incentive will be applied toward the 2nd lien however, the Seller's Real Estate Attorney claims that it is not legal for GMAC to withhold the Seller's FHA Incentive.  Does anyone know if this is true or not?

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Permalink Reply by Bryant Tutas on September 24, 2012 at 10:34am

The FHA incentive can be up to $1,000. This can be used towards the 2nd lien if the 2nd needs more than the $1,500 FHA will pay. So yes it is legal.

Permalink Reply by Judy Johnson on September 24, 2012 at 11:01am

Thanks so much Bryant for your response!!!

Permalink Reply by Kevin - Greenville, SC on September 24, 2012 at 11:33am

GMAC is correct (probably for a change).  If you are still meeting the required tiered proceeds even after the Incentive is applied you can request GMAC submit a variance request to HUD.

Permalink Reply by Kevin - Greenville, SC on September 24, 2012 at 12:37pm

HUD will pay an additional amount up to $1,500 for the discharge of junior liens after
the Mortgagor’s incentive has been applied.

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