Question: In a short sale where the financing was insured
by the FHA is the borrower first required to miss three payments? This was the advice given by a lender before it would allow a short sale to go forward. Answer: We sent this question over to HUD and received this response: “The information is incorrect,” HUD told OurBroker.com. “Under the code of federal regulations 24 CFR 203.370 (c) 2 and section 204 of the National Housing Act the loan must be in default at the time the short sale transaction closes for HUD to legally pay a claim (31+ days). This does not preclude the servicer from processing the short sale request with the loan current if the borrower and property meet all the short sale requirements and close the transaction with the loan one month delinquent.”
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Dan GarciaTrevana Properties is a placement company working with a variety of hedge funds, REIT's, commercial banks, specialty boutique lenders, private investors and other funding sources not widely known to the general public. Archives
November 2016
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