I received approval on a short sale today where my seller had an FHA loan. There is nothing in the approval letter stating that the deficiency is waived and the bank (HOMESTREET0 states that their standard letter is all they issue. Anyone have any experience with this? Thanks!
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The info you are looking for is in the PFS documentation that is sent to the seller (as well as yourself, if you are the negotiator), it is stated the FHA does not pursue for the deficiency. Pages 5 & 15.
Have good day.
Jim Miner
Got it and thank you!!
It is FHA policy to not pursue deficiency if the sellers cooperate in good faith with the PFS. http://limteam.typepad.com/files/mortgagee-letter-08-43-1.pdf - Mortgagee Letter 2008-43 - see section P.
Rojane,
If the property went through the Pre Foreclosure Sale Program (FHA SHORT SALE) they should not be pursuing a deficiency judgment. If you have any questions you should reach out to HUD for confirmation that they do not pursue if a Pre Foreclosure Sale Is completed successfully.
Hope this helps.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com