Servicers Bypassing the Approval To Participate on FHA and Insisting House be listed???

Recently I have been working on several FHA short sales with different lenders (BofA, Wells Fargo, Chase and Citi).  After a lengthy review of the short sale paperwork they are demanding that the house be listed but not providing an Approval to Participate Letter to their client.  When we ask for the ATP they say they "don't have to give ATP's anymore" and that we need to list the house and get an offer to move forward. I have confirmed that my 6 properties are in fact FHA loans so why are they not following the FHA guidelines?  I even had a property on the market for 90 (then 120) days and asked the lender to move forward with the DIL process.  We were told that because an ATP was never issued that the homeowner isn't eligible to discuss a DIL and to keep marketing the property?????

Anyone else running into this problem and does anyone have any suggestions on how to combat this?

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I have never asked for ATP before marketing FHA properties, I never wanted them to give me a price to list in a declining market and then get an offer 3 months later only to have them set on a higher price

Unfortunately our agents in this market won't write offers on an FHA short sale without being provided a copy of the ATP.  They have been "trained" that the process takes too long if the ATP has not already been released.  When we do list the homes before hand, we don't get offers.  

Deanna, perhaps that is a limiting belief... it wont work here is one that I heard alot when I moved to the area I am in....

Yes.  If the Foreclosure process has already started they generally will no longer issue.  An ATP can be valuable if there is a Foreclosure Sale date and since the drop in the tiered net proceeds doesn't begin until one has been issued.  But as Jeff said it's generally not a good idea to get one prior to Contract.

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