This is a new one for me. FHA appraisal is in. but no ATP issued.
We have an offer which exceeds appraised value. cash as-is, no inspections.
Midland says that per FHA Guidelines, the condition of the property (kitchen cabinets missing) makes the property unmarketable therefore Midland rejected the Application to Participate.
I just re-read the PFS Program as revised 2/8/2013 and there is simply no mention of property condition making a property unmarketable.
Further, Midland is saying that since FHA will reject the short sale, they will reject a DIL as well. Does that sound right?
Tags:
They are Underwriting these like a underwriter would a home loan.... not accurate.
Ask Midland to submit a Variance request to the FHA National Servicing Center.
If the damage is not surchargeable it is not necessary to obtain approval from NSC prior to approving the PFS Agreement. Regardless of the cause of the damage, the mortgagee must work with the mortgagor to file a hazard insurance claim and either use the proceeds to repair the property or adjust the claim by the amount of the insurance settlement (non-surchargeable damage) or the government’s repair cost estimate.
Source ML 2008-43
Send an authorization to HUD. They seem to read the email so include why you are contacting them - that even though you have a buyer offering more than the FHA appraised value, Midland refuses to let you submit the offer because they say the property is unmarketable. (Really, is that they way to get as much money from your failed assets as you can?? geesh.)
BTW, I have an appraisal from 1/8/13 and continue to jump up and down for these bozos to issue the ATP. I think much of that delay is due to the pinheads that they hire these days. This one closed the file because I didn't supply paystubs. Multiple times since December, I told them (and gave them docs) that sellers are now completely retired - no paystubs. And this is after they paid for the appraisal. Nice when it doesn't matter what you do and you still get a nice hourly pay, eh?
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