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Hi Edee, ATP is "approval to participate" in the FHA Pre-Foreclosure Sale (PFS) program. It is specific to FHA loans and basically gives the seller permission to sell their home as a short sale once they fill out financial information and demonstrate to the lender that they have a legitimate hardship. The lender will order title search and appraisal and direct you what dollar amount they wnat you to list home at and how much they will accept as their NET for an offer for a short sale. It's best to list the home first and start marketing it to establish some market value while the lender is reviewing the application.
To Amy, I have reduced it slightly, but it's still not low enough to generate an offer as the appraisal is flawed and too high. I am going to reduce it again this week, and hope an offer comes in, then fight for a variance.
Will see how it goes. :)
AMY GERRISH said:
Have you lowered the price at all? The pfs says at or close to (enter dollar amount). Also, I believe after 30 days you can drop the price so that it they net 86%.
Update: Wells negotitator called me today to say that after the ATP expires, they will move file over for DIL (deed in lieu) and contact my seller to see if she will cooperate. It will take 60 days for DIL to be completed and if we can bring an offer during that time, they will cancel the DIL and return her to short sale status. She said they can accept the 84% of appraised value at this time. Will not order 3rd appraisal as it's against investor guidelines. (1st appraisal was fair market value, 2nd was above market value and is what I am stuck with after they dropped the ball and lost last buyer) I asked if we can apply for a variance if I can get them an offer and she said YES, but she wasn't sure if there was a certain mininmum percentage the HUD needed in order to approve the variance. Going to lower the price again and see if we can get an offer and then the variance if needed. I was reading HUD-90041 (their variance form) and it makes mention of needing a variance on values less than82% of appraised value....so it seems like we can go between 82-84% safely??
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