Working on a Flagstar loan and was told that per FHA guidelines the seller has to apply for modification before they will even look at a short sale. Stated that the seller needs to make payments for 3 months and then if he qualifies for the modification they will approve the modification and will not consider the short sale.
Seller has not made payments since February of 2011 and there are two sale dates on the property. HOA is foreclosing next month and the lender is foreclosing in April.
I have worked on FHA properties with plenty of other lenders and this has not been the case. I spoke with the negotiators supervisor and he confirmed this was the only way to move forward.
Basically if they don't look at the short sale now this property is going to foreclosure as the seller is not going to make the payments on the property. He has true hardship and with the HOA getting ready to foreclose it wouldn't make sense anyway.
Does anyone know of a contact at Flagstar or if there is a way around this?
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I am going through a very similiar situation. The very first thing I did was contact HUD as per advice I rceived on another thread in this forum. I have since sent them a package and awaiting the financial interview with my seller client, she has a sale date in March. They told me they take no less than 60 days to review the package but have expedited since the sale date was so close. So far I have followed up every week and they seem to be doing what they said they would and I keep updating fianacials. The good news is I was just told they are changing their short sale model and going to a single contact which should hopefully simply the process with them. Please post if you get any headway as i am navigating my way through a very similiar scenario.
Who did you call at HUD?
Permalink Reply by Kevin - Greenville, SC on January 3, 2012 at 2:01pm
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sf...
Contact Us:
U.S. Department of Housing and Urban Development FHA National Servicing Center 301 NW 6th Street, Suite 200 Oklahoma City, OK 73102
Thanks for the advice. I'll let you know how it goes.