Short sale after recent loan mod approval
Hello Superstars,
I have a client who would like to short sell her home. She was recently approved for a loan modification on a FHA mortgage. The seller's hardship began after a divorce. The seller tells me she'll be struggling with the modified loan payment. Can we initiate a short sale under this scenario? I'm hearing mixed information. My hunch is that she can given the effects of divorce for which her ex-husband is still on the mortgage. The lender is Wells. What say you? Thanks.
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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Yes. If the Borrower circumstances change FHA will consider other retention or disposition options.
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Permalink Reply by Marlon Rankine on
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Change since the loan mod or the original mortgage?
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both.
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Thanks Kevin.
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Permalink Reply by Alexander Villegas on
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Yes, she can still be considered for a short sale, especially if her financial situation has changed.
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Clarification: They will not qualify her solely because of the divorce. However, she can be considered if she can provide financials that verify the inability to make the payments, even after the modification has been approved. Have her put together a financial statement that show the inability to pay and write a hardship letter explaining the circumstances that have changed.
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Permalink Reply by Wayne Brooks on
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Doesn't sound like her circumstances have changed, since the loan mod. Qualifying for the loan mod sort of flies in the face of qualifying for a short sale. Obviously, give it a shot though.
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