I marketed a PFS for over 60 days and finally received two offers.  We countered them to ask for highest and best and submitted the highest offer to the bank.  It nets them 85% because their appraisal is high.  They are now requiring an 88% net with no flexibility.  They are also refusing to suspend the foreclosure sale date, which is two days from now, December 14, 2016.  Here are some other facts about this transaction that may be pertinent.

  1. HUD did not issue an ATP, but instead required that the property be marketed for a minimum of 15 days before accepting an offer.  They want 88% net to issue a 60-day ATP.
  2. Appraisal was done in late September/early October
  3. Sellers do not live in the home as they relocated and have been renting the home out.
  4. This home has several thousand dollars needed in repairs, but the appraised value does not reflect that.

Any ideas on how to help my Sellers avoid foreclosure?

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Replies to This Discussion

Who is the servicer?

Do you have a ticket opened with FHA?

Is the position coming directly from FHA or the Servicer?

It is Wells Fargo.  They are stating that this position is coming from FHA, but I haven't spoken with them yet.  Just got this news this morning.  It sounds like I need to open a ticket with HUD immediately.

@Robin Yes open a ticket. I open a ticket when I take an FHA short sale as it may take some time to get a ticket issued. Keep in mind that they do not have to be delinquent for a job relocation for owner occupied properties. Just has to be greater than 50 miles one way. If it is rented I think mortgage has to be 90 days delequent. My opinion is the rental provision is a trap for unsuspecting home owners trying to do the right thing and then are not allowed a short sale. See -  Mortgagee letter 2013-23 portal.hud.gov/hudportal/documents/huddoc?id=13-23ml.pdf

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