FHA And Foreclosure Date.
Homeowner is many months behind. Has filed Chap 13 and will soon file Chap7 if she can't work a short sale. Chase Manhatten said they can't do a short sale because the foreclosure sale is less than 30 days away. They are working on a repayment plan, and can push the sale date forward if something isn't worked out before the 17th (date of sale) My question is...if they can postpone the sale to do a workout, why can't they postpone the sale to do a short sale?
Lydia
Experience dictates policy.
This could be a Chase policy, and/or an FHA policy. From their perspective, 30 days to complete a short sale is unrealistic. The FHA has learned that historically the majority of preforeclosure, and preforeclosure short sale Proposals aren't feasible... and have learned that seeking to adjourn the Sale (for short sale consideration) is both expensive, and often a waste of time and money.
However, it's much more efficient to consider the structure a repayment plan... that can usually be done within 30 days... and if the plan isn't accepted, the Sale can proceed.[ Edited by TheShortSalePro on Date 03/04/2004 ]