Replies to This Discussion

Permalink Reply by Wendy Smith on December 13, 2010 at 5:59am

what is a PFS?

Permalink Reply by Jim Schneider on December 13, 2010 at 6:03am

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.

Permalink Reply by Wendy Smith on December 13, 2010 at 6:07am

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.

Permalink Reply by Robin M. Willis on December 13, 2010 at 6:33am

Wendy,

 

FHA loans are supposed to be approved by HUD first before the bank is even allowed to review an offer per HUD guidelines.

Permalink Reply by James ferebee jr on December 13, 2010 at 9:36am

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

Permalink Reply by Kevin - Greenville, SC on February 21, 2011 at 8:51pm

Found this nugget:)

 

http://www.ginniemae.gov/media/consumer_web.pdf

Permalink Reply by Kevin - Greenville, SC on February 22, 2011 at 4:02am

Borrowers are sometimes mistakenly advised that Ginnie Mae is the owner or investor in a loan because government-insured or guaranteed loans (FHA, VA, RD) serve as collateral for Ginnie Maeguaranteed securities. Ginnie Mae guarantees the security, and it carries Ginnie Mae’s name; therefore, borrowers are often mistakenly advised that Ginnie Mae owns their loan.  Ginnie Mae does not determine eligibility for loan modifications. The loan modification process is managed by the loan servicer according to the guidelines of the insuring agency. Ginnie Mae is happy to provide information that may help consumers get in touch with the appropriate agency.

Permalink Reply by Michael Schneider on March 4, 2011 at 4:02am

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.

 

Permalink Reply by Jim Schneider on March 4, 2011 at 6:22am

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!

Permalink Reply by Kevin - Greenville, SC on July 9, 2011 at 3:19pm

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