Advice On How To Effectively Deal With HUD - Family Member In Foreclosure
My nephew (23 years old) purchased a home from realtors, paid full asking price because of competing bids. 4 months later lost jobs, 8 months later received notice of foreclosure.
He would like to move on, economy is such that not alot of jobs are available and he has no income.
The house is not worth the 96K that he paid for it. (needs roof, plumbing, electric work, etc...)
I'm willing to buy the house and would like to offer the lender/hud , say $60,000 to buy the house, do the repairs and sell it.
Are there any words of wisdom from the group on how to effectively work with HUD on getting this kid out of this mess?
YOu will not be dealing with HUD, you will be dealing with the lender, which has a FHA loan backed by HUD. Hud has some rules on accepting short sales offers. They will not short sale below 82% of FMV or less than 65% owed. So if he owes 95,000 the bank will not short sale below $61,750 (65% of 95,000) no matter of the condition. With this being said you would need to at least get the property FMV to come in at $75,305 in order to SS it for the 61k amount. (75,305 - 18% = $61,750)
Hope this helps.
Good Luck.
Tim
Thanks, it does help. Should I proceed to try to talk to the lender, In your opinion?
Or try to follow their process of talking to a Mortgage Counselor, and explaining the situation?
First you need a Letter of Authoriization from the homeowner. Basically just something in writing that says owner gives you persmission to discuss the details of Loan # with your name. YOu will need the loan number and owners SSN.
But you should talk to the lender directly, no one in between. Ask for Loss Mitigation department. Tell them you need find out who is working on this account so you can fax your LOA to them. Once you fax it, they will tell you any info you need to know. Tell them you would like to submit a short sale offer to them and if they will send you, or the owner a package. Then the process begins.
Who is holding them mortgage?
Tim
We're in Illinois, (Aurora) and National City has the mortgage.
It's not a problem obtaining authorization from the owner (he's my nephew) and I've already been pre-qualified for a mortgage loan.
He has no income, and is having a hard time just taking care of the gas, elec., and water.
What type of verbage should I put in the Letter of Authorization? Can you point me to a generic form that they will accept?
Nona
LOA can be simple.
I seller give permission to you to talk to the bank about loan #.
__________
seller
seller ssn#