what is time frame for fha price reductions based on appraisal?

i am working w boa on a  fha short sale. I thought that fha would accept 80% of value right out of the gate. what i am experiencing is 90% of appraisal value.

The buyers offer is closer to the 80% of appraisal.

Can someone post what is "general" rule of thumb in price reductions on fha appraisals based on days and percentages?

Thank you.

Johnna

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Replies to This Discussion

Permalink Reply by Bryant Tutas on February 23, 2014 at 6:10am

FHA works on NET figures.

For the 1st 30 days they will accept a NET of 88% of appraised value as stated on the ATP. the next 30 days it drops to 86% then the next days it drops to 84%.

Permalink Reply by Kevin - Greenville, SC on February 24, 2014 at 4:20pm

yep.

Permalink Reply by johnna lodge on February 24, 2014 at 5:27pm

Thank you..for some reason i thought they started with 80% of ATP so i have to wait until it gets to 6 months to get it at 80% providing no damage to property?

I couldn't get property preservation there because of an abandoned car left from previous tenants. Seller called property preservation and they still did nothing. I think it has busted pipes..will have to go see. it would be a miracle if it doesn't but buyer has now moved on..numbers don't work for their investor.

Thank you for your responses!

J.

Permalink Reply by Kevin - Greenville, SC on February 25, 2014 at 9:41pm

not how it works. it never get to 80% unless HUD/FHA approves a variance for the reduction in the net.

 
For the first 30 days of marketing, Mortgagees may only approve offers that will
Permalink Reply by johnna lodge on February 26, 2014 at 3:38am

Thank you...well i guess this one needs a variance...thank you for the information on the guidelines kevin.

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