Situation,
just listed a short sale property. BOFA is the servicer, FHA loan. I called BOFA after they had received the letter of authorization, and asked for the FHA case number so I could start the PFS process, they said that since the investor is Ginnie Mae that there will not be a PFS since Ginnie Mae does not allow that.
Has anyone seen this yet? Any truth to it? Any experience dealing with Ginnie Mae?
Tags:
what is a PFS?
Sorry for over-abbreviating Pre-foreclosure Sale Procedure. It allows us to have a short sale pre-approved, they have the property appraised (real FHA appraisor, not a bpo) and agree to a net amount FIRST.
I am doing my first FHA short sale and thought it went to FHA first for a pre-approval but Bank of America said No - they wanted it first. The file has just now been moved to (FHA) Phase One after sitting around with BoA for 4 weeks.
Jim Schneider said:
Sorry for over-abbreviating Pre-foreclosure Sale Procedure. It allows us to have a short sale pre-approved, they have the property appraised (real FHA appraisor, not a bpo) and agree to a net amount FIRST.
Wendy,
FHA loans are supposed to be approved by HUD first before the bank is even allowed to review an offer per HUD guidelines.
Contact this guy at Ginnie Mae..... [email protected] and tell him what your issues are and he will get you someone to speak to at BofA..
Thanks,
Jim Ferebee
Jim,
The FHA/PFS program is so specialized that I find that the person that "answers the phone", reasonably enough, may not understand the program, or even know the phrase "Preforeclose Sale Program".
I totally understanding why a rep may not know the program. It really is complex and unique. I've worked with FHA/PFS for five years now, and I still need to go back to ML 08-43 and ask "hummmm...what does that really mean".
I think (thought?) that most of the FHA loans, and state loans supported by HUD funds, were securitized by Ginnie Mae, so the statement doesn't seem to make sense. Eg, I believe that most of Wells' FHA loans are GinnieMae's, hence owned by a Trust, I would think.
But, I would think it is the Insurer that matters here, meaning the FHA, and therefore ML 08-43, in this case.
Bank of America, and many other servicers do not have anyone on the front lines that understands PFS, and it is so pervasive, that I can't think it is accedental. If my experience indicates anything, it is that you have to ask to speak to their manager, and be willing to get HUD involved, otherwise they keep feeding you the same line, we don't have to do that. Actually, they do!
Does Ginnie Mae have to approve my loan modification?
No. Unfortunately, some Servicers are incorrectly advising borrowers that Ginnie Mae must approve all loss mitigation and loan modification activities. All loan modifications must comply with the program requirements of the agency that insures or guarantees the loan and must be executed by the loan servicer. The agencies operate through loan insurance or guaranty programs that back up the borrower’s obligation to pay the mortgage loan at the loan level. Those agencies are listed in the table below. Insuring/Guaranteeing Agency
Phone number
Federal Housing Administration 888-297-8685
Veteran Affairs 877-827-3702
Rural Development 800-670-6553
Public and Indian Housing 800-561-591
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.