When it's a medical hardship you can always pull the ADA card (American's with Disability Act). I realy would write a letter to the Treasury Department and the top three executives indicating the possible ramifications of denying someone that falls under the ADA. This is a good case and I sounds like an iron clad case with a little letter writing you will be able to either postpone or have sale rescinded.
Do not under any circumstances play the card "the bank will save movey over REO" and documenting the amount of the loss of the bank. This is not for any agent to decide, it is for the investor to decide. We all know if costs more to foreclose and and keep the property on the books, but there are many factors that go into the investor's decision. The main factor is if the hardship is valid. Banks really take a great deal of stalk in the hardship because not everyone can have a short sale just because it costs more to have an REO on the books.
First there is no such thing as a FHA committee. I just love the smoke and mirrors. First, you have to make absolutely sure there is a valid hardship. I would recommend obtaining an authorization to pull the credit report. Often times I have found the agent goes on what the seller says is a hardship. Many times the seller has multiple properties in either their name or spouses name and there is a strategic defualt situation. Make sure you review the bank statements sent in.... you will be suprised that someone in a hardship spends money in places that will put the hardship into question.
If seller is over 12 months in default, the only way to get the postponement is to show the servicer or investor was in error. For example, if you can show dates and times the bank was contact via phone, email, or written communication (letters)... you may have a shot. I would suggest wirting a letter to the Office of President. The names of the top three executives can be found on the internet. I would also at the same time write a letter to the Treasury Department. You can also report on OCC.gov. Most if not all banks react pretty fast when they are reported to feds due to the implementation of Frank Dodd.
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