FHA Short Sale Streamline Short Sale process 2013

    FHA Short Sale Streamline Short Sale process 2013


    FHA has recently come out with some changes to the short sale process, one being that they now are going to do streamlined short sales. The streamline short sale was first seen with Bank of America and also on HAFA short sales.

    Streamlined short sales help reduce the time and paperwork needed to complete a short sale. Below is the overall guideline and process recently release by HUD. Basically, under a streamlined short sale there is limited documentation and in most cases hardship does not have to be proven or documentation produced to show hardship.
    To qualify for a FHA Streamline Short sale:
    For Non-Owner-Occupants:
    ·         Mortgagor(s) are 90 days or more delinquent on their FHA-insured loan as of the date of the mortgagee’s review
    ·         Each mortgagor has a credit score of 620 or below
    For Owner-Occupants:
    ·         Mortgagor(s) are 90 days or more delinquent on their FHA-insured loan as of the date of the mortgagee’s review
    ·         Each mortgagor has a credit score of 620 or below
    ·         Except for service members with PCS orders that meet the requirements for a Streamlined PFS, owner-occupant mortgagors must have been reviewed for loss mitigation home retention options. Mortgagees may only offer a Streamlined PFS or DIL to owner-occupant mortgagors when one or more of the following conditions have also been met:
    ·         The mortgagor has defaulted on a Trial Payment Plan within the last six months
    ·         The mortgagor has defaulted on an FHA-HAMP or standard (rate-and-term) modification within the last two years
    ·         The mortgagor has been deemed ineligible for a permanent home-retention option (Standard Modification, FHA-HAMP, or Formal Forbearance) or Special Forbearance, pursuant to ML 2012-22
    ·         The mortgagor received a Special Forbearance but did not otherwise qualify for a permanent home-retention option by the end of the forbearance period
    ·         The mortgagor has been deemed eligible for and offered a loss mitigation home retention option. However, the mortgagor has a credit score below 580 and provides written documentation that he/she chooses not to accept the loss mitigation home retention option offered by the mortgagee.

    I will keep you posted as we work some of these deals, but on the surface this really could assist in cutting down the turnaround time on FHA short sales! For more information check out my site www.moorebrittingham.com

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