Short Sale Disqualification
I am working on a Short Sale Application with Countrywide. The owner of the property had to leave town several years ago and couldn't sell his house . . . so he rented it. The tenants stop paying rent, and damaged the property greatly before they were evicted. After the short sale package was sent to the homeowner (out of state), Countrywide learned that the FHA property had been used as a 'rental", and told the owner that this disqualified him for a FHA short sale with Countrywide. Any ever have this problem?
I then asked Countrywide they would discount the mortgage an assign it to me. They told me that they only sell mortgages in bulk, and that if I wanted to buy this property that I would have to wait until the foreclosure sale. Is there an other angles that I could work with this?
Brock C 
An FHA loan is a government backed loan to help first time homebuyers get into a home. It is for owner-occupied homeowners only. If FHA finds out that you are not occupying the home, then you can be disqualified for a short sale.
FHA does suprise home visits to about 5% of the people who get an FHA loan to make sure they are owner-occupied. (They can't go to every home with an FHA loan) If they see that you are renting it out, then they can take further actions because you violated their rules for obtaining an FHA loan.
Country Wide is a hard lender to get a short sale from, they have many rules that you have to obey to get a short sale from them. You may not have a way around this, I suggest either consider purchasing it as foreclosure auction ot going after another lead. Just my opinion.
Don't get stuck on this one deal or else you'll miss the other 10 passing you by while you waste your time with this one...
Tanya
Tanya - I have several properties that I am working on right now. I certainly am not opposed to throwing them aside if they don't make sense, but I wanted to learn the opinions on you pro's on if there are any further options. Becuase the LTV value is already upside down on this property, I will have to let the bank buy it bank at the auction, and then I will buy it from HUD. Thanks for your thoughts!
I never said to "throw them aside if they made no sense."
I truly believe that investors should ask themselves, "Is it worth my valuable time?" Some investors will be wanting to get that one deal and working so hard to get it to work that they miss all the other deals that go by. Why use your time when you can use OPT (Other People's Time)?
Get me? Just my opinion. I wasn't saying to give it up. All I meant was that if all else fails, then move on to the next one. Don't think of it as a failure, learn from it and don't do it next time...
Tanya
That was good advice, I apprecaite it!
Tanya, yours was an excellent response.
It's important for those who attempt to utilize a short sale technique to prequalify the candidate before devoting energy &/or resources.
And, it's important to know the specific short sale criteria for FHA, VA, 'pooled loans' , or subsidized loans.
What criteria do you use to prequalify the candidate/property?
I have been working with Countrywide as well, and have little success in working with them. I heard that they are one of the hardest for short sales. Good luck!
Quote:
Don't get stuck on this one deal or else you'll miss the other 10 passing you by while you waste your time with this one...
Tanya
This sort of advice belongs somewhere on this site etched in stone. Definately words of wisdom, and I think it applies to other areas, not just investing.
I'm printing it out and sticking it on the wall to remind me.
Thanks!
Andrew
wonderboy,
You want another one? I don't remember where I got it from, but it helps to have it posted in front of my computer...
"Stop thinking like a Thousand-air and start thinking like a Millionaire!"
Add that to the list, it helps me out whenever I look at it. I hope it will help you too.
Tanya
Tanya
I'm going to have to duplicate that one!LOL!
I love this site!!