Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on October 10, 2012 at 8:08am

This is the FHA Rule -

The Borrower must be 31 days or more delinquent at the time of the Preforeclosure Sale
closing.

 You'll have to call me for the caveat.

(864) 485-9283

Permalink Reply by Kevin - Greenville, SC on October 10, 2012 at 8:28am

At the time the PFS closes, the loan must be in default (i.e., delinquent more than 30 days). Mortgagees may exercise their discretion to accept applications from mortgagors who are current but facing imminent default. However, by the date the PFS settlement occurs, the loan must be in default. Mortgagees should document this decision in the claim review file. 

 

The second sentence is the caveat...

Permalink Reply by Bill Garrett on October 10, 2012 at 8:37am

Kevin:  Thanks, as always, for your guidance on this stuff.  Is the language in your above post from the actual FHA/HUD guidelines?

Permalink Reply by Kevin - Greenville, SC on October 19, 2012 at 5:41am

Yes.

Permalink Reply by Sheila Vardakis on May 4, 2013 at 3:08am

Kevin,

 

I had one that was current when the contract was submitted to the bank so they denied it because they weren't 31 days delinquent.  They would have been at the closing date.  Your statement says at the PFS closing?  I had to go back and resubmit the offer again and then ended up losing the buyer because of how long it took bank to respond.  BTW, Wells Fargo is the bank.   I guess I am under the impression that the file needs to be 31 days delinquent by the time you submit your contract offer or shortly thereafter.  is that not the case?

Permalink Reply by Denise Sipple on May 9, 2013 at 6:51am

I just had this happen to me today with Wells Fargo.  Do you have any updates?

Permalink Reply by TOP END Properties on May 15, 2013 at 5:46pm

As Kevin said .. the standard procedure is to move forward once they are 31 days late, however, the servicer can proceed at their discretion.