I am working on my first short sale with a USDA loan (BofA).  I have done quite a few FHA-PFS short sales over the past few months. I am assuming that the FHA-PFS process is fairly similar to the USDA-PFS process, though no one at BofA can really give me an overview USDA-PFS steps.  This particular homeowner has already attempted a loan modification with Bank of America, but his monthly mortgage payments actually went up and he cannot afford it.  He has decided to short sale his property.  The file seems to be stuck in the Home Retention Center.  The homeowner has called and spoken with his CRM multiple times stating that he wants to do a short sale.  She said that she would give him a "short sale recommendation" so that his file can move from the HRC to the Short Sale department.  The short sale file has yet to be opened.  The homeowner called his CRM again today and she told him that the fastest way to get a short sale file opened was to vacate his property.  Is this true?  I am afraid that USDA-PFS might have the same occupancy requirements of the FHA-PFS - which only allows a homeowner to vacate the property under certain circumstances and still qualify for the program.  Any guidance with this would be greatly appreciated.  

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Not true...don't do it.  Homeowner must write letter, sign and date requesting loan be moved from modification to short sale.  Also originate short sale in Equator.  Hopefully that will do it.   FYI: USDA is very strict and may consider the property abandoned if homeowner moves. USDA will NOT postpone sale date within 15 to 20 days of foreclosure sale date so stay on top of your deadlines. After you get the file to short sale USDA will not pay Seller concessions to Buyer if  Buyer not using USDA loan and they pay limited closing costs (no attorney fees, transfer fees, etc.).  That's all I can think of off the top of my head right now.  I'll update post if I think of something else.  Hope this helps.

Thank you so much, Lisa.  I tried to originate the short sale in Equator, but the system would not allow me to.  Maybe USDA loans are not run through EQ in my area (Georgia)?  I was afraid that just vacating the property without a solid reason might cause an issue.  I appreciate your response. 

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