We received approval for a Variance Request tonight on a FHA PFS. This was our first Variance Request and took some tap dancing as the negotiator swore she did not know what a Variance Request was.  We emailed the negotiator the Variance Request form and received no response from her for 2 days.  We called HUD directly and guess what?  Negotiator all of a sudden knew what a Variance Request was and submitted it.  We received approval for Variance in 48 hours! 

Tags: BOA, FHA, HUD, PFS

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Exactly what is a Variance Request and when used? I would like more as to why you needed it.
Im with Donnie. What, exactly, is that?
When you receive the Approval to Participate in the Pre foreclosure sale, there are minimum net sale proceed guidelines. The first 30 days on the market the minimum net sales proceed must be 88% of the as is appraisal. The next 30 days is 86% and the final 30 days is 84%. I have uploaded the variance request for you to take a look at as well as the approved Variance. The offer we received was 70% of appraised amount.

Home had been on the market for 14 months and the approval to participate was expiring on 1/29/2010 so I did use that to the seller's advantage when asking for the variance. I also made HUD aware of every stall tactic Bank of America used including the fact we lost 2 higher offers due to negotiators dragging their feet.

Also, with the FHA PFS you and the seller is entitled to a copy of the appraisal.
Attachments:

Hey guys,

Can you provide me with an example of how to complete the Variance based on the following scenario:

List Price: $85,000 (listed March 2011)

Sales Price $72,500

FMV Today $57,500

HAP pays 1st lien $116,000

2nd lien $17,436

Both liens with BB&T

Thanks,

Frank Biganski
frank@mrtownhome.net

Hi, I am hoping you are still active here I need assistance on a HUD second liend, with BoA please reply if you can.

I was wondering if you could help me out. I am stuck with a SS with BoA.
They are telling me that there is a second mortgage with HUD which I veryfied thru title search for almos 9K, Negotiator is telling me she will request variance because the appraisal was less that the contract ( appraisal was for 75K and the offer is for 80K)
I asked if the variance was for the second lien with HUD she said NO, she said is two different things and I am really confused I dont know who to contact for clarification, would you be so kind to help me out?
Liz

 

We are in need of a Variance on a Wells Fargo Short Sale. HUD tells us that Wells must file the Variance and not the Agent / Borrower (and Wells has not been cooperative with anything to date). Was that your experience as well? Thanks!
Yes it was. The BOA negotiator said she did not know which form I was talking about. I emailed it to her. Call Marilyn with HUD, she should be able to assist you. 866-449-1661 ext. 8544

John Slocum said:
We are in need of a Variance on a Wells Fargo Short Sale. HUD tells us that Wells must file the Variance and not the Agent / Borrower (and Wells has not been cooperative with anything to date). Was that your experience as well? Thanks!
Our Wells contact e-mailed today saying he got the auction postponed 60 days. He did not say the Variance was approved so, I'm presuming we are being given time for the FHA/HUD folks to finish their review. The current offer is at 81% and we should be able to close this in time with approval. Thanks!
Our buyer has agreed to a high selling price due to the seller FHA requirement that comps not be distressed sales (60% of all comps in my area are distressed sales). Result was a very high FHA appraisal. Servicer is BofA and maybe also the investor. If a variance is filed and accepted, do you think BofA will reopen the negotiations?

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