Short Sales-Does your End buyer want to use FHA financing?
Short Sale End Buyer With FHA Pre- Approval Letter? Now what? Considering the waived guideline requiring the seller to be on title for 90 days is fairly new(Feb 2010), Most Lenders have not closed one of these transactions with FHA.Here is a quick tip: Does the loan officer have an in house underwriter? Are they aware this is a short sale?Are they familiar with FHA 90 day title seasoning requirement? Do they know that requirement has been lifted for a year? Direct them to the Hud Web site and the FHA web site. Explain that you are purchasing with your money, and then selling the property to his borrower. Explain this will be 2 transactions back to back. You should always have the title company be willing to take calls from the loan officers/underwriters, so that they can hear the process. Once you get to that point, the underwriter for the loan officer will probably contact their investor to check. Next, you have them email you all the questions they have about your transaction and how you are going to meet the guidelines. Finally, email them the answers to every question, and then at that point you can decide if accepting the offer on your property with an FHA buyer, is solid enough to get your first one completed.
for more tips and insight, stay tuned or leave a comment . I look forward to being very active in this community. Questions or Feedback Welcome!
Comments (3)
Great post. There is obviously a solution to be constructed by creative minds.
Ted Akers, over 15 years ago
The waiver is of the requirement to wait 90 days to go to contract after coming into title. The confusion lies in the definition of resale date. FHA specifically defines the resale date as the date of Contract. As per the guidelines, there cannot be any assignments nor Contract Vendee transactions. As the seller must be the owner of record on the resale date, I cannot fathom how you will be able to arrange a back to back closing without utilizing some other vehicle that does not reset the seasoning clock like a trust.
Kathleen Scanlon, over 15 years ago
Great Post!!! Very informative. Please keep us posted as you travel thru the world of "flipping" to FHA End Buyers.
James Ward, over 15 years ago