Forum

Okay Super Stars, Let's see what we can do with this:

Here are the facts.

We began this Short Sale process in September of 2012!

Sellers are a young couple who's income was halved for pregnancy related health reasons. In 2009 owners relocated to another state to pursue another field offering possible career advancement.  As the value of the house was half of what they owed they rented it out for 4 years. The tenants eventually defaulted and dissappeared leaving them 4 mos. behind in payments and with a structural mess at the house.  Mold, collapsing garage slab, improperly supported floor joists after tenants removed basement walls, etc.

We have had a steady string of buyers in contract at full fair market price.

Owners credit is above 620.  They are insolvent. They have no savings other than modest retirement.

The house appraises at less than 50% of amount owed.

Denial #1: Sellers are told they must apply for loan mod and be denied.  They did...and were.

Denial #2: Sellers are denied because they don't reside in the home.  They moved her back in.

Denial #3: Appraisal is too old and FHA denies the variance.

Denial # 4: Alternative work out. .... What????? No one at BOA/Wingspan will tell me what that means.

Denial # 5: Borrowers don't qualify, job was lateral change, no raise of pay at time of job change.

Here's the question: If this is a waterfall process as FHA tells me and they qualify in EVERY way notated in the Mortgagee Letter - 2014-24, how can I find out what other criteria FHA is using to deny these sellers?  Where is it written?

Is it possible that it's just at the whim of some pencil pushing scrooge who has been told to deny every 2nd short sale that crosses his/her desk? 

Your answers and discussion will be very helpful.  This is getting as bad as applying for Disability. Do we need an attorney?

Thank you and Best Regards,

Julie Straton

Associate Broker

Villa Rica, GA