FHA Short Sale Approved, then 3 days later pulled?

I am flumoxed.

On Friday I got a 3 year old file approved (4 buyers, 3 appraisals, etc. etc.) under the FHA PFS program.  I have the SCRA and closing instructions in hand.  Life is good.

Fast forward to 10 minutes ago....negotiator calls me and tells me that the file is about to be service released and that there is a 'new investor' (this sounds fishy) and they want an 8% increase in the purchase price and a 1% decrease in the commission.  Did I mention that the broker has sold this home 4 times...?

Has anyone else ever had this happen on an FHA short sale before?  I've heard of dodgy, but not on these loans...

I'm just about to contact HUD to open a complaint, but am wondering if anyone has skinned this cat another way.  The property is not worth 8% more in price, nor do I think the broker is willing to take a haircut....and as I recall 6% is specifically allowable under the PFS.  Again, something seems wrong here.....

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Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on September 3, 2013 at 10:31am
Permalink Reply by Kevin - Greenville, SC on September 3, 2013 at 10:44am
Permalink Reply by Ismael Medina on September 3, 2013 at 11:09am

I have done my share of FHA short sales and I have never come up with a situation like this one.  As far as the price, unless you are giving the house away, it should not matter as the FHA appraisal will take care of that.

 

In regards to the "New Investor" I have never been told there is another entity for an FHA loan, the PMI Co. usually handles all that.

 

And as far as the commission, some lender feel that they can manipulate the comm. split, however, unless there is a dual agency taking place, the comm stays the way it is.  After all, the home owner is paying for it, he will get a 1099 at the end of the year, EVEN IF THEY DONT HAVE TO PAY.

 

Good Luck and Don't Give Up.

Permalink Reply by Kevin - Greenville, SC on September 3, 2013 at 11:29am

One more thing. Did you have a valid ATP in place?

Permalink Reply by Patrick Smith on September 4, 2013 at 7:44am

Yep, had a valid ATP.

Permalink Reply by Kevin - Greenville, SC on September 4, 2013 at 12:48pm

e-mail me at - [email protected]

Permalink Reply by Megan Brooks on September 5, 2013 at 7:41am

We are in the same exact situation. 66K was what on the ATP and what was approved. We were trying to get it closed, and now there is a "new investor" asking for 105K! Asinine. 

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