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Permalink Reply by Kim Eisen on April 12, 2012 at 11:45am

Hi Pamela - You are going to get a lot of different answers, so here's mine.  I faxed in a FHA offer in January and nothing happened and my seller ended up in loan modification 'hell' even thought the seller financial review was done within a few days.  So I took it upon myself to start the file in Equator later February.  Things started happening and the PFS (FHA PreForeclosure Sale approval to participate) was done within 2 weeks. 

Wells does have a FHA version Short Sale Affidavit (I've attached a copy) that you'll need. 

If I had to do it over again, I would not fax the offer in and would start in Equator, then there is some order of what's being done.  It will sit there for a few weeks while they get the appraisal for FHA and get that done. But still call to verify that appraisal has been ordered and change your listing to have you be notified for any showings, so you'll know when the appraiser goes out there. 

Also, note that FHA will auto allow 1% closing costs for new FHA loans and 0% for others.  If your buyers need closing costs paid, Wells can ask for a variance from HUD.  Also, seller may be entitled to a 'reward' of up to $1,000 from HUD if they close within 90 days of the PFS and it goes down from there.  Hope this helps.

Attachments:

• Short Sale Affidavit FHA Wells 3-9-12.pdf, 237 KB