Percentage of Principal Balance v Market Value?
I believe at one place or another I read that in order for a property to qualify for a HUD PFS, the current market value cannot be less than 65% of the outstanding principal balance.
I have had a few short sales declined upon receipt of the appraised value, and the servicer had no idea why it was declined. I believed it was because they did not meet this ratio.
I can no longer find this documentation. Does anyone know if this is one of the criteria for a HUD PFS?
Replies to This Discussion
-
Permalink Reply by John Edelman on
-
This requirement was omitted when the PFS program was revised at the end of 2008. (Mortgagee Letter 2008-43).
How long ago did you have the short sales declined? -
-
Permalink Reply by Ann Trieb on
-
It was in May or June of this year.
John Edelman said:This requirement was omitted when the PFS program was revised at the end of 2008. (Mortgagee Letter 2008-43).
How long ago did you have the short sales declined? -
-
Permalink Reply by Bryant Tutas on
-
Ann I have closed several FHA PFSs where the principle balance was well above that guideline. It never made a difference. John is correct that the rule was omitted from the guidelines in 2008.
Ann Trieb said:It was in May or June of this year.
John Edelman said:This requirement was omitted when the PFS program was revised at the end of 2008. (Mortgagee Letter 2008-43).
How long ago did you have the short sales declined? -
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons