Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on January 10, 2012 at 12:40pm

No prior Approval is needed. Proceed with Listing the Property if that is what the Seller(s) desire. You can adjust the list price once the Appraisal is back to reflect the price on the Appraisal and/or Approval to Participate if you feel it's justified.  With FHA Loans, the Pre-Foreclosure Sale program is the ONLY option for a Short Sale.

Permalink Reply by Wendy Rulnick on January 10, 2012 at 1:18pm

I agree with Kevin. It's almost a benefit to list it prior to appraisal. The appraiser will be able to see your reasonable pricing and price adjustments that you may have needed to make based on market response.

Permalink Reply by ElizabethWeintraub00697006LyonRE on January 14, 2012 at 4:44am

All of my FHA B of A short sales are handled outside of Equator, although that could change with B of A's new policy. I agree with listing first. Every single one has had a problem with value, and the bank has always come down to meet my price. However, bear in mind that these are full-blown appraisals done by B of A, and they are still way over market in my area. HUD will want 88% net of value. So, as long as you can meet that percentage for the net, the sales price doesn't much matter. Also, HUD wants to pay 1% for the buyer's closing costs. It doesn't mean they won't make an exception, though.

You've gotta like HUD's policy. It's OK for a buyer to get an FHA loan and have the seller pay 3%, but when it's HUD who is approving the short sale seller fees, that 3% is a red flag.

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate