I am working on submitting my short sale to Equator. We got an offer and this is not my first rodeo but it is my first short sale after an FHA loan mod.

My atty says the loan mod resulted in a 2nd lien in favor of HUD in the amount of $43,323.71 and typically that amount has to be paid in full with the remainder going to the 1st lien.

Can someone here confirm that and shed some light on the docs that have to be submitted to HUD? Actually, if we are paying HUD in full is there anything that has to be submitted beyond submitting this to Equator?

Thanks for the help.

Jerry Robertson

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We have the Approval to participate and am loading the offer, authorization and prelim HUD. Just wanted to get the HUD-1 right before we got too far.

Thanks for the quick response.

Jerry

Just a follow up, I tried to initiate the short sale via Equator but was rejected stating it was a govt loan and could not be done that way. I have faxed the docs requested to their short sale dept and am now waiting. Not sure how long it reasonable but I suspect 24 hours to get someone to notice the fax? 

Any insight in this part of the process would be appreciated. FC date is looming and we don't want to waste any time.

Jerry

I just had one with the same situation with CITI and all they did was send the money back to HUD before we started the short sale process.  It only took a few days and then it was just a regular short sale, only one lienholder.

BOA will more the likely (they will) have to submit a variance request to HUD due to that fact the PC will cause the net to fall short.

Brian, Jimena, Kevin. Good info as I am abiut to get s contract with same situation. Thanks.

You need to process the 1st mortgage through equator. Send in the short sale package to the SS dpt at BOA. You may need your CRM's assistance in getting the FHA short sale into equator. Typically I just email the items to one of my contacts and they start getting the file running into equator. You will need to contact Deval LLC and get a payoff of the partial claim. ( silent 2nd ). The negotiator with the 1st will submit a variance to HUD to have the partial claim paid in full. What is the value of this property? A partial claim of $43k is relatively large and this will eat up a good amount of the 1st liens NET. This may place you below the required NET per the ATP. Depending on the NET the seller may not be eligible for relocation incentive.

If you have any questions or need anything at all do not hesitate to each out to me.

[email protected]

310-564-6389

www.ishortsalenow.com

Brett, 

You are kind to offer so much help. I'll call if I need to.

Value on the property is about $180K with the offer at this point of $165K. Buyers still think they can get a deal but I am not seeing it turn out that way. My goal is to get a real number BofA will approve and we'll see if the buyer will step up. I told them they would likely have to. We'll see.

Anytime, don't hesitate to give me a ring or shoot me an email. If the value is 180k then they ideally want to NET 158,400 at 88%. That's likely not going to happen due to the partial claim. Many times they are willing to go down to 84% of the ATP value would be a NET of 151,200. Once again with a large partial claim like  there is on title this may not be an option either. Hopefully they can push it through as is, but they may want an offer closer to their appraised price on this one.

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