What is an acceptable approval to close on FHA short sales?
Sounds simple doesn't it?
What constitutes an acceptable short sale approval letter when working on an FHA short sale? The approval to participate is not sufficient with our closing agent. We have email messages from the negotiator stating the close of escrow date and her approval of the HUD-1 to close. B of A will not provide us with anything more than that. The buyer's lender does not want to proceed without a formal approval letter on one transaction and escrow does not feel comfortable collecting the buyer's funds to close on a separate file without an acceptable approval letter.
Any thoughts? Can anyone show me an example of the approval letter they used to close? This is two separate transactions dead ending with the same issue. Help! Thank you!
Replies to This Discussion
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Permalink Reply by Jimena Paridee on
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The last one I did with BofA we got an actual approval letter with the sales contract review form, the approval to participate is not an approval letter, it is only saying the seller has been accepted into the program, you still have to get the purchase agreement approved after that.
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Here's the letter
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FHA Approval.pdf, 49 KB
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Permalink Reply by Diane Wheatley on
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OMG! Thank you. I told you it was simple. I'm too embarrassed to explain. Can we close this thread now? Thanks Jimena so much.
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Permalink Reply by Rachael Babinchak on
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No stupid questions, only stupid people don't ask and make stupid mistakes...we're always learning and this is what the forum is for. Good luck.
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Permalink Reply by TOP END Properties on
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You need an APPROVAL LETTER with instructions and the payoff acceptance amount. Approval to Participate is not what you need. If you don't have an approval letter, then you also do not have a written waiver of deficiency.
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