Hi All,

I haven't completed an FHA shortsale since maybe the beginning of the year.  At that time I loved FHA shortsales, just hated the servicer.

Anyway, I am now working a new FHA shortsale with a very tiny bank.  Here is my problem:

Mortgage Payment $1,400

Seller Income:        $1,180   Social Security                Mr Seller

                               $2,170   Military Retirement          Mr Seller

                               $3,500   Job Income                     Mrs Seller

Mr Seller lost his job prior to purchasing home and so began getting Social Security.  Mr Seller continued to look for engineering job, but could not find one, so moved out of state.  Mrs Seller lived alone for 4 months, but finally quit her job and moved to be with her husband.  So, although Mr Seller lost his job, it was prior to him purchasing home.  He now has new job out of state, making $11/hour.

So, my concern is, do we have a hardship.  Mr Seller wanted a job, he didn't want to live off social security and military retirement, so he left the state.  Mrs Seller quit her job after being alone for 4 months.

Also, the home is now VACANT.  In reading HUD PFS guidelines, I am not sure my sellers can get a variance for the vacancy.  Yes, there was a job loss, but it was prior to the purchase of the home.  There really wasn't a transfer, there wasn't a divorce but there might have been if the wife didn't finally move out of state to be with her husband, and there wasn't a death, but the wife's mother is very ill, so they also moved to help out with the sick mother. 

Any thoughts/help would be greatly appreciated - are we just wasting our time here?

Thanks!

CAT