I am working a short sale in South Fulton in College Park, GA, and this one is with Bank of America. The mortgage is an FHA insured loan and the seller qualified for the Pre Foreclosure Sale (PFS) HUD Program. This particular program has the following guidelines that the bank must follow:
- Get an appraisal done by an FHA approved appraiser
- Accept a minimum of 84% of the appraised as a net to the bank on the transaction
- Allow four months from the date of approval to participate (ATP) for the seller to get a contract
After three months and twenty nine days, multiple offers, and two contracts that fell through, we finally get an offer on the last day of the ATP. However, the offer is below the 84% minimum net per the HUD guidelines. What do you do? My goal is to help my seller stop the foreclosure and get the short sale done.
South Fulton (College Park, East Point, Union City, Fairburn, Palmetto, Cascade, Camp Creek) has been hit hard with foreclosures, and it seems like many homeowners are not educated about the short sale option. Some I talked to just did not want to bother with the paperwork and hassle. I work to explain the benefits of a short sale to homeowners facing foreclosure. I also try to make the process and paperwork as simple as possible.
I go ahead and submit this final offer to the negotiator. By this time, he and I have gotten to know each other a little. The current appraisal had expired, so he ordered a new one. The new one did come back lower than the previous appraisal but still higher than the offer and way below the net required by HUD. So the first response was the offer is rejected.
I immediately responded to my negotiator 'hey will you check with HUD on this to see if you can go beyond your delegated authority?' Now I'm taling his language, and I get some more credibility and buy in. He agreed to submit the request to see if the variance would be approved.
Today I get the email stating the variance was approved and we can proceed with the transaction. I was absolutely estatic as I felt that I had took the extra step to help my client get her short sale done. So to my fellow short sale agents and brokers, reach beyond the first 'no' answer you get. You owe it to your client.
Special thanks to Group 46:10 for featuring this topic on their video blog! Kevin and Fred rock! Nothing like practical application of the subject matter to increase your learning.
STOP FORECLOSURE! Need help with a short sale in South Fulton (College Park, East Point, Union City, Fairburn, Palmetto, Cascade)? Please give us a call at 404 923 4210 (cell 404 246 3210) or click here to contact us. We will respond within 24 hours.
The Jordon Wheeler Group is an experienced team of real estate professionals! We know short sales, foreclosures, HUD Homes, Lease Option, and so much more to help you the client have a successful experience in any real estate transaction.
Office 404-418-8092 Cell 404-246-3210 Fax 404-991-3770