Comment

Comment by Fred Bauscus on August 3, 2016 at 11:13am

Luther, a divorce is a sufficient reason for a short sale, regardless of income.  Has that fact been included with the hardship letter and a copy of the decree submitted?

Comment by Luther Fisher on August 3, 2016 at 3:36am

She makes a rather high income but the house is too far behind to catch up (2 years). She was already denied for a modification. 

Comment by Allan Robinson on August 2, 2016 at 10:27pm

Hi Luther.  It's me again, LOL.  The Deficit Income Test or DIT is used on all FHA short sales.  You take the total take home pay of the borrower and compare that to their monthly household expenses. If they have negative income, i.e. monthly expenses exceed take home pay, the lender will approve the short sale. 

My experience is that homeowners are in foreclosure for a reason.  When filling out a financial statement for the borrower(s):

1. you only have to list income for everyone on the loan ONLY. If the wife is not on the loan, you're only required to show income of the husband.

2. borrowers drastically underestimate their monthly expenses and they flat out forget things.  You'll have to wade through their bank statements and do your own tally.  I had to do that on a short sale i just took and I found an extra $1,700 in expenses.

Good Luck!

Comment by Luther Fisher on August 2, 2016 at 10:07am

Update on my short sale case: So we were declined again. This time they said that the borrower's income is too high to justify a short sale.

Comment by Brett Goldsmith on July 27, 2016 at 8:16am

@luther speak to a manager and escalate to Fannie Mae if it i s FNMA backed through homepath.

Comment by Luther Fisher on July 26, 2016 at 6:13pm

Sent in the offer the first time and other reps said it was declined because house was vacant. Asked about variance and probably left 3 voicemails, rep still won't call back. Resubmitted offer with variance request and offer was declined this time saying it has not been on market long enough -- again, I find this out from other reps looking at notes on account, I've called again and left 2 messages, still no response. 1st buyer has backed out but we have another offer now and I'm not sure what I should do because the loan rep is not responding. 

Comment by Brett Goldsmith on July 14, 2016 at 7:40pm

It depends on how long the property has been vacant for and also the reason they moved as seen in the guideline below from Allan. A variance may need to be submitted and approved to allow the borrower into the Pre Foreclosure Sale Program.

[email protected]

310-564-6389

www.ishortsalenow.com

Comment by Allan Robinson on July 14, 2016 at 4:24pm

At this point, I send the negotiator the following verbiage from ML 08-43:

• Are owner-occupants of a one-to-four unit single-family dwelling with a FHA-insured mortgage under Title II of the National Housing Act.  Mortgagees are authorized to grant reasonable exceptions to non-occupant borrowers when it can be demonstrated that the need to vacate was related to the cause of default (e.g., job loss, transfer, divorce, death), and the subject property was not purchased as a rental or used as a rental for more than 18 months prior to the mortgagor’s acceptance into the PFS Program;

I also send them the ML 14-15 and i ask the negotiator "if hud doesn't allow vacant properties, why do they eligibility requirements for non-owner occupants?'

If that doesn't work, i go to the negotiator's supervisor and if that doesn't work, i open a ticket with the national servicing center.  If the HUD advocate finds cause, they will call Greentree and let them see the error of their ways.  

Good luck.

Comment by Luther Fisher on July 14, 2016 at 4:16pm

divorce situation. husband left, wife could not afford to keep it and moved to cheaper rent. 

Comment by Allan Robinson on July 14, 2016 at 4:13pm

whats the homeowners hardship???

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