Greetings Superstars!

I was told that the laws have changed on the "NET SALE PROCEEDS" and what they encompass and include.  It has been my experience with all other of my FHA Short Sales that the "Net Sales Proceeds" is the actual purchase price that will satisfy the Broker fees, Title Fees, RE tax pro-ration, and any amount due to the Seller for participating (if applicable).  In other words, if an FHA appraiser states the fair market value is $255,000.00, then according to the 'three-tier' marketing period, in the first 30 days the bank may approve offers that result in 88% of the FMV, in this case $224,400.00.  Out of the proceeds of this $224,400.00 comes the payment of Broker fees, Title fees, etc. 

  I feel like Woody Allen in "The Sleeper".  Any suggestions or help would be much appreciated!  Btw, I have been trying to get this done for almost 5 years and still not have received an ATP, even though the seller meets at minimum 3 reasons for the Short Sale.....unemployment, divorce and the 50+ drive to work limitation for consideration :/

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Why won't they issue an ATP? Has a case been opened up with HUD? 88% NET must be met at top tier which would mean the 1st lien payoff is 224,400 after commission, taxes, title, etc. 3rd tier down is 84% NET.

Let me know if you need anything anything at all or have any questions.

[email protected]

310-564-6389

www.ishortsalenow.com

Hi Brett,

  Thank you for the response!

  This has been the longest short sale I have done...originally loan was @ BofA, and while we were in the middle of obtaining the ATP, the loan was sold to M&T....so we had to start all over.  I have no idea why they are dragging their feet on the ATP.  Except that they can. :/

  On all of my prior FHA SS, the 88% net requirement was inclusive of the related fees, not after the fees.  If the FMV of the home is $255,000.00, this market value would reflect the customary fees as well.  A seller/buyer would otherwise pay the fees of brokerage, etc, out of their pockets at the time of sale, above and beyond the negotiated sales price.  I have looked at my past HUDs on FHA SS and found this to be the case in each of them. 

  Yes, I have a ticket # for HUD, but it does no good.  My contact @ NOVAD is worse than my contact @ M&T.

I have opened a file with CFPB and prevented a sale earlier.  Maybe twice.  Both files are enormous as we have complied with all of the requirements and submissions.  I am about to prepare another complaint.

  An approved sales price should be the 88%.  Maybe I have just been super woman (:-D, but don't think so. 

Let me know your thoughts.

Thank you!

Elizabeth (:-D

Sorry to hear that. It's hard to know what's going on from the outside. Do you have a contact at HUD? Novad should assign someone from HUD. Well, maybe you had an offer close to 88% and the NET was within 84-88%. The 88% NET is after all debits on seller side of the Est. HUD.

The required NET is after all expenses not before fees. The 88%, 86% and 84% figures is the amount that goes to the seller after all is paid. If the NET is lower then it requires a variance form HUD.

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