If you are “lucky” enough to have gotten an FHA loan on your home (more on how to determine this later) then you have some relatively good news concerning your short sale.
For starters, the banks typically follow the guidelines on what to do (which we will get into in a second) with your short sale. However, the difficulty will come from Bank of America, or Suntrust who know less about whether you have a FHA Loan or not.
However according to the FHA website:
Your lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA’s National Servicing Center toll free at (888) 297-8685
- Express an interest to participate in the program.
- Must have FHA Loan
- Must be at least 31 days behind
- Must have property listed with a licensed real estate agent
- Home Must be owner occupied*
- Home owner must be able to prove that they are unable to make the payments in writing
What does the bank have to do?
- They must appraise the home with an FHA Certified Appraiser – whether or not there is an offer!
- Pull Preliminary Title Work
- Delay the foreclosure proceedings up to 4 months
- Review the marketing of the listing agent
- Allow the Sale to close in up to 8 months
- Provide a tiered structure to allow the homeowner to adjust price if necessary
You can read more about it here;