Quick FHA Short Sale Facts
If you’re considering a short sale and you currently have an FHA mortgage, you’ll need to learn about the benefits and restrictions to participating in the program. Following are a few quick details, which highlight the benefits and requirements of participating in the program:
Benefits of a FHA Short Sale
- Deficiency is waived
- Homeowner can receive between $750 and $1000 at closing for participation
- HUD will pay an additional amount up to $1,500 for the discharge of junior liens after the borrower’s incentive has been applied.
- HUD allows reasonable costs of the sale including up to 6% sales commission and 1% “Seller’s Costs”
- No cash contribution or promissory note required
- Once approved, the foreclosure process is put on hold for 120 days
FHA requirements for eligibility
- Homeowner has a documented hardship
- Must be an “arms length” transaction
- Property must be owner-occupied
- Exceptions: When it is verifiable that the need to vacate was related to the cause of default (job loss, transfer, divorce, death), and the subject property was not purchased as a rental investment, or used as a rental for more than 18 months
- Borrower must be 31 days or more delinquent at the time of sale
To find out if you are eligible for a FHA Short Sale in Utah or should you have any questions about the services we provide, contact us by Phone at (801) 432-8682 or email at email@example.com.