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Loan Modification on a FHA owner occupied home...

Posted by Jeanne Goltz on November 14, 2011 at 4:32am in Short Sale Discussions

I have a client that wants to short sale and has a FHA loan, and the property is owner occupied.  BOA is making her go through a loan modification process even though she wants to short sale.  Is there any way around the modification?

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Replies

  • Kevin - Greenville, SC November 14, 2011 at 7:09am

    HUD’s home retention alternatives such as Special Forbearance, Mortgage Modification, or Partial Claim must first be considered and determined unlikely to succeed due to the mortgagor’s financial situation.

    Mortgagee Letter 2008-43, Page 5.

  • Kevin - Greenville, SC November 14, 2011 at 5:06am

    nope. The homeowner must be reviewed for home retention options before they can be approved into the PFS Program.

     

    Question 1 - What is the priority order that Mortgagees must follow when applying HUD's Loss Mitigation Home Retention Options?

     

    Answer - Mortgagee 2009-23, page 3, states HUD's Loss Mitigation Home Retention Options are to be reviewed in the following order: Special Forbearance, Loan Modification, Partial Claim and FHA's Home Affordable Modification (HAMP).

     

     

    http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sf...

     

     

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