Hi All,
I haven't completed an FHA shortsale since maybe the beginning of the year. At that time I loved FHA shortsales, just hated the servicer.
Anyway, I am now working a new FHA shortsale with a very tiny bank. Here is my problem:
Mortgage Payment $1,400
Seller Income: $1,180 Social Security Mr Seller
$2,170 Military Retirement Mr Seller
$3,500 Job Income Mrs Seller
Mr Seller lost his job prior to purchasing home and so began getting Social Security. Mr Seller continued to look for engineering job, but could not find one, so moved out of state. Mrs Seller lived alone for 4 months, but finally quit her job and moved to be with her husband. So, although Mr Seller lost his job, it was prior to him purchasing home. He now has new job out of state, making $11/hour.
So, my concern is, do we have a hardship. Mr Seller wanted a job, he didn't want to live off social security and military retirement, so he left the state. Mrs Seller quit her job after being alone for 4 months.
Also, the home is now VACANT. In reading HUD PFS guidelines, I am not sure my sellers can get a variance for the vacancy. Yes, there was a job loss, but it was prior to the purchase of the home. There really wasn't a transfer, there wasn't a divorce but there might have been if the wife didn't finally move out of state to be with her husband, and there wasn't a death, but the wife's mother is very ill, so they also moved to help out with the sick mother.
Any thoughts/help would be greatly appreciated - are we just wasting our time here?
Thanks!
CAT
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I don't think that much has changed since 10/1. The servicer needs to go through the loan mod process, but FHA does not allow w/o owner occupant. Property must be maintained. I think you have that homeowner had to leave to get a job. It should be good.
Sorry Joe, you're incorrect. The new guidelines do make allowances for 2nd homes & investment properties to be considered for a PFS Short Sale. They "may be vacant, but cannot be condemned." Review ML 2013-23 on the HUD website.
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administra...
Fred, you cannot get a loan modification if the property is not owner occupied. I have had to beat that into BofA and WF people many times when my seller was out of state, etc.
The new guidelines include streamlined eligibility in certain situations that specifically state "For Non-Owner Occupants." It appears this process bypasses the "waterfall" process that I think you're referring to Joe.
The other side of this is that depending on the seller's non-retirement assets, they may be required to make a cash contribution. If the seller has more than $5,000 in cash reserves, the minimum contribution will be 20% of the cash reserves over $5,000. Again, I'll refer you to ML 2013-23 that outlines the changes.
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