USDA Rural Dev - Short Sale Info?
Has anyone tried 'doing' a short sale on a pre-foreclosure with the USDA? I've received conflicting info from 2 different offices. PLEASE help! Thank you.
(The USDA was formerly called 'Farmers Housing Authority')
1. Get signed purchase agreement from seller contingent on USDA accepting a short sale of, say $25,000. on a $40,000 loan balance.
2. Pay for appraisal of property.
3. Submit purchase Agree; copy of appraisal; pictures of prop; hardship letter, etc (include all short sale items that will help your case.)
4. If your offer is eventually accepted, you will have to write a separate check for $3500.00 for a 'Curative fee' to USDA. This is for the attorney/research done on the property.
Here is where the info gets questionable. The other USDA office I called said they had never heard of a 'Curative Fee'. The only other fee would be a 3% charge based on the sales price, plus any interest accrued on the back payments.
Sellers would also get a 1099C form with regard to the deficiency judgment.
What am I missing? Do I have all the facts? What are the REAL rules? Many thanks for any help. Julie
USDA has FREE pre-foreclosure list for all states - resales.usda.gov/sfhdirect/SFHPropMain.cfm
Please help me with the original post question!!
Thank you all. JUlie
hi, miss jules--pm me and i can get you in the right direction..
Regrds-pat