Replies to This Discussion

Permalink Reply by Kathleen Lordbock on April 23, 2013 at 2:35am

I have had one approved where the sellers have moved. They have submitted several letters as to why and proof that the utilities are on and the property cared for. We now have approval and are closing in May.

Permalink Reply by Kathleen Lordbock on May 16, 2013 at 1:33pm

Just closed this one May 15th- Ocwen FHA-HUD with a variance for price and time.

Permalink Reply by joe beauchamp on April 23, 2013 at 3:22am

A variance is very specific - like the utilities are not on - need a variance and you are saying you don't know what FHA turned down. Well, what was the variance for?

FHA considers the short sale a gift. This seems to be based upon the forgiveness of debt after the sale. They have several rules that clearly cut off their nose to spite their face. Which line did you cross that makes your client "not deserve" FHA's "generosity"? Fix it.

For instance, if you blatantly said that no one is maintaining the property, FHA will shut you down. They do not care that the property will disintegrate over the next 2 yrs until foreclosure sale and that they will lose $100K on a property currently worth $150K, for which you have a buyer - very stupid, but, hey, your gov't in action.

So, uh, how about asking what the variance was for and why it was denied?

Permalink Reply by Rachael Babinchak on April 23, 2013 at 5:58am

I have had a servicer tell me FHA declined a variance, only to appeal to FHA directly and be told "we never got a request for a variance", then 24 hrs later, here you go, your variance is approved.  Present the situation in detail when you call FHA, cite reasons stated from agents below and other reasons you think WF may have viewed this short sale as going against guidelines, and FHA will look into it.  I've had good experience with FHA with calm, friendly professionalism and sound logic.

Permalink Reply by Mark Simon on May 7, 2013 at 10:05am

I have an FHA short sale with Midland Mortgage denied because property is vacant. It is a tiny 617 square foot one bedroom condo unit. Seller moved because she had a child two years ago and couldn't live in the 1 bedroom anymore. Midland claims they applied for variance FHA and it was denied. Does this make sense? Anyone had success with increase in family size as reason for vacant property approved for variance?

Any FHA folks out there available to weigh in on this situation? Thanks.

Permalink Reply by Christina Waymreen on May 7, 2013 at 10:59am

Why not try to rent it? I rented an FHA property last week, advised the Bank the homeowners had to relocate, stated the property is being taken care of by the property manager and listing agent and got short sale go ahead. Also, my negotiator was really great and she advised me when I started how to get it approved for short sale. Also, renters were advised the situation and got a break on the rent.

Permalink Reply by TOP END Properties on May 15, 2013 at 5:50pm

Your property is owner-occupied, unless the following apply:

• your reason for leaving the property is the same reason you could not make your mortgage payments
• the property was not purchased as rental investment or used as a rental unit for more than 18 months

Permalink Reply by Ismael Medina on May 4, 2016 at 6:59am

Does anybody know how to handle a Turn Down for an FHA short sale of a property that at one point was a Mixed use and now is 100% Commercial?

I was Turned Down for a Short Sale because Wells Fargo says that the property is now 100% Commercial and illegible for a Short Sale.

Thanks