FHA loan with flagstar

I have been working with flagstar for about 90 days with an offer on a short last. Last week the borrower was approved for a loan mod. Borrower cannot afford the property, even with a loan mod, but the loss MIT people are claiming there are no other options other than foreclosure. This would be a violation of the HUD/FHA guidelines if what they were saying is correct. I have contacts at HUD, anyone have a contact they would recommend at flagstar?

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FHA loan with flagstar

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