FHA Homeownership Counseling Form
Hi guys,
One of the forms required on this FHA short sale I'm negotiating is the "homeownership counseling certification."
For those of you who have done FHA short sales, how have you dealt with this form? Do you actually have the homeowners talk to a counseling agency, or what?
Thanks,
Jules
With more and more frequency, a distressed borrower seeking to participate in an FHA approved, PFS needs to 1) be counseled, and 2) obtain a certificate sealed by an approved HUD counseling agency.
The counselor will review generally acceptable options and alternatives (approved by HUD) to foreclosure.... and issue a cert to the Borrower.
If your deal is straightforward and you are honest with the distressed borrower... you have nothing to fear from the Counseling.
If you are trying to screw over the homeowner... then the Counseling may expose the proposed transaction as 'predatory' and best to be avoided.
I believe that the form does not ask for anything more than a counselor signature, name, and agency name. Susan White, 12/08/2004, Affordable Housing. It would be difficult for the lender to followup on the counseling. If you go to the HUD website, there are about 20 sites that give the counseling in the Orlando area alone.