Comment

Comment by Michael Schneider on April 25, 2011 at 6:10am

Never had this, but I do kinda see the logic.  22 months later, after being informed of the various kinds of available assistance (assuming required notices were sent), numerous calls, etc, the mortgagors seek the forbearance, foreclosure suspension, deficiency waiver assistance of PFS....

I have taken on extreme FHA cases, but generally won't anymore, because the rate of failure is too high, they are so time-consuming, often have other liens, and they are much more likely to go DIL/FC in spite of much effort.

Not saying this necessarily applies, or that there aren't good reasons, just another possible POV.

Comment by Bill Garrett on April 25, 2011 at 5:49am

Chase has just told me our FHA seller is ineligible for the Pre-Foreclosure program due to "extreme delinquency" [22 months].  They will still consider us for a SS once there is an offer but won't do the PFS stuff because of the "extreme delinquency."

 

Sounds like nonsense to me but thought I would see if you good folks had any insight or experience with this issue.

 

Thanks.

Comment by Michael Schneider on April 16, 2011 at 11:29am

Not sure why you would push DIL, Justin.  I don't see the advantage from a DIL to either the estate/mortgagor or the Servicer/FHA, any more or less than without of the death of the mortgagor.  The risk to the estate seems the same as the risk would have been to the net-worth of the mortgagor.  Also, I don't see a cost difference, at least not yet.

The only FHA DILs I've done are after PFS.  So, if the Servicer requires the same evaluation for the DIL and PFS, why not sell the property under PFS?

Comment by Justin Berry on April 15, 2011 at 10:16am

@Wendy @Kevin @ Michael @Alan -  Thanks you so much for your quick responses!  This site is truly a great idea exchange.  I thought a variance was needed b/c of non-owner occupancy but I think the death exception covers it.  I can see that a DIL may make sense and will suggest it.  Property is significantly underwater and I know the estate is looking to liquidate it.  Just these responses will allow me to have a semi-informed/knowledgeable discussion with the PR.  I'll be sure to update here as this one progresses!  Thanks!

Comment by Wendy Smith on April 15, 2011 at 10:11am

OK, so I lost that bet.  Good answers guys...better than mine. 

Comment by Alan Remigio on April 15, 2011 at 9:36am

With probate, there's a lot of situations.  If this is a situation I think it is, you may not like the solution.The first challenge is value. Is this house very much underwater? If there is equity, the heirs may want to pursue it. If it is under water, the executor may want to trade the property for a DIL to preserve remaining assets from being exposed to the lender. A probate attorney should give better direction. In probate situations, it is much less expensive for the estate to dispose of the property by turning it over to the lender with conditions when there is no equity rather than go through a short sale and risk a claim on the remaining assets.

Comment by Michael Schneider on April 15, 2011 at 9:33am

I have a FHA short-sale where my client died, as we were starting to sell the property.

We re-executed all documents under the "estate of...".  The Servicer requested the death certificate and the Court doc appointing the Administrator of the Estate.

I have the PFS application in, with the offer.

So far, it is proceeding as with any other PFS.  Why do you need a variance?  And, why is the foreclosure more likely?

I'm expecting the FHA/Servicer to ask for verification that the Estate has insufficient assets to pay the deficiency, in lieu of the standard income/asset verification under PFS.

 

Comment by Kevin - Greenville, SC on April 15, 2011 at 9:27am

There is a death exception -

 

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14626.pdf

 

Comment by Wendy Smith on April 15, 2011 at 9:22am

Wow.  that's a good one.  I don't know but my bet is that the property will wind up a foreclosure.  why?  the seller doesn't occupy the premises anymore, it's that vacancy issue.

Comment by Justin Berry on April 15, 2011 at 9:12am

Quick questions for you pros:  Just got had an FHA short sale land on my desk where the seller is deceased.  Property is in probate and the is a PR for the estate who is looking for guidance.  Will HUD approve a variance on this one or is this a destined HUD Home?  Lender is BofA.  Thanks in advance!

• ‹ Previous
• 1
• …
• 72
• 73
• 74
• 75
• 76
• …
• 98
• Next ›
• Page