Posted on Jan 16, 2013 in Roseville and Sacramento Short Sale FAQs

Hi this is Mark Peek at Keller Williams Real Estate, your short sale specialist for the Roseville and Sacramento area. Today’s video is about a SunTrust FHA short sale that we’ve been working through. We came up against a situation where there were some guidelines in place by HUD that didn’t quite make sense.

The short sale was actually declined because of two guidelines in place by HUD; if those guidelines weren’t met, then SunTrust was afraid that HUD wouldn’t pay out the claim for the short sale deficiency. In this case, the borrower has two FHA loans, but the reality was that their employer transferred them to a new location across the country, so they purchased a new home and rented the other home out for about two years. They got into a situation where they couldn’t afford both payments. There is a guideline that says you can’t rent the home out for more than 18 months to be considered for a short sale. The other guideline is that you can’t have two FHA loans and do a short sale. This doesn’t really make sense because at the end of the day, HUD is going to pay out on this claim if the home goes to foreclosure. By appealing this directly to HUD, I was able to get a variance on this file because we have an involuntary relocation; it wasn’t the borrowers intent to do this. HUD granted a variance and the short sale was then approved by SunTrust.

I just wanted to let you know that guidelines are in place for a reason, but they’re not set in stone. There are certain circumstances that can change whether or not these guidelines can be bent at all. If you have any questions about an FHA short sale, or any other type of short sale, feel free to give me a call, send me an email or click Start Here at the top of the page and enter in your information. I look forward to hearing from you and working with you on your short sale.

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