I need clarification on PFS rule changes: condo, Dad purchased in 2005 with his daughter, she was transferred out-of-state and they couldn't sell so they obtained a land-contract buyer. He has been paying 6 years but just lost his job. They are not allowed to rent these condos now. Dad has never been late, would like to short sell, but was told he needed to be occupying. As I read the rules it seems we won't be able to get him into the PFS program: non-occupant, not delinquent, doesn't have a current hardship other than the fact that he will be hard-pressed to continue making the mortgage payments within the near future. The way I am reading it the only way he qualifies with a vacant condo is if he goes streamline which means being 90 days behind. Does anyone think a variance likely? I appreciate your input.
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It can be vacant. It used to be it could only be rented for about 12 months that's not the case anymore.
New guidelines state:
Mortgagees may approve a mortgagor for a Streamlined PFS or DIL without verifying hardship or obtaining a complete mortgagor workout packet3 if each of the conditions below exists:
For Non-Owner-Occupants:
Mortgagor(s) are 90 days or more delinquent on their FHA-insured loan as of the date of the mortgagee’s review; and
Each mortgagor has a credit score of 620 or below.
AND
Principal residences, second homes, and investment properties are eligible for disposition under the Streamlined PFS and DIL processes, provided that all mortgagors meet all program requirements. Such properties may be vacant, but cannot be condemned.
All of the new guidelines ARE ATTACHED. Also...http://shortsalesuperstars.com/group/fhashortsales
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