Short Selling And Hud...
Hi guys,
A woman just contacted me this morning regarding a letter I sent her. I pulled up her property and learned that it is a Hud property or soon to be. Are short sales possible with Hud, I was trying to avoid dealing with Hud, but guess I should look these things up more before sending out letters.
Any help would be greatly appreciated.
Dee 
Hi Dee
As I understand it....Hud will short sale, however they will only discount 82% of the BPO. I have not personally done a SS with HUD. All mine have been with conventional lenders. You can bet that as long as your paper work is complete and you can work with the 82% margin from BPO that it will work just fine.
Is the appraisal 82% of the "as-is" value of the home or 82% of the after repair value of the home?
Thanks,
Dee
in my understanding, it's the "as is" value. banks and hud aren't willing to get someone in there to fix it up to get it up to market value, so they couldn't use that.
Presumably, the foreclosed mortgage is FHA insured meaning that HUD might be forced to take back the property unless it is sold 'preforeclosure or preforeclosure short'
If the mortgagor otherwise qualifies for short sale consideration, FHA would consider their NET recovery to be not less than 82% of the property's as-is, fair market value.
The key is to denigrate the mortgagee's perceived value.
Also, if there are any junior mortgages behind the FHA insured first, they are allowed a maximum of $1,000 as payment in full.
If you would like to read "Prequalify a Short sale Candidate" PM and or Email me and I'll send you a copy in word.