Seller purchased home 2 years ago w/ USDA financing and also received 1st Time Homebuyer credit.
Seller needs to SHORT SALE home & current w/ payments( Market value @$25K short). What are the liabilities w/ Homebuyer credit & i need info on USDA SHORT SALE PROGRAM.
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Bob - We have a USDA group and a Ginnie Mae group on the Short Sale Superstars site. I've done several USDA short sales (USDA Ginnie Mae). Their current program language is not to pursue a deficiency. As for the home buyer credit... are you speaking of a state-backed home buyer downpayment assistance program? If so, I know Florida, my own state, has very understanding options for homeowners doing short sales. Finally, according to Ginnie Mae USDA, their servicing guidelines state: "A borrower who successfully sells the property securing the loan using the PFS option is relieved of the mortgage obligation. The borrower shall not be pursued for deficiency judgments by either the Servicer or the Agency."
Hi Wendy, thanks for your reply. So this USDA would fall into the HUD PFS PROGRAM? THE 1ST TIME BUYER CREDIT WAS THE GOVERNMENT TAX CREDIT PROGRAM, where 1st time buyers got the $8000. I read that if they sell w/in 36 months, they have to refund the entire $8000. Seller's bought in 4/ 2010, but need to short sale , due to relocation hardship.- Bob
Bob - It is not HUD PFS, but Ginnie Mae USDA uses the term "PFS", as well... I don't know what will happen in your case with the $8000! Maybe someone else can pipe in. Also, an accountant might know the answer to this.