Short Sale deficiency waiver is it for me ??

Thought I write a bit about deficiency waiver on a short sale. There are different factors involved when it comes to who will be waiving the deficiency . First let me make this clear on a short sale you are asking the lender to waive the deficiency that is the difference from the short sale purchase amount (hopefully you have a contract) and the remainding balance that you still owe the bank.

When I said earlier about the different factors, one being who holds the note, and  is there a sale date and some other factors too, but  today I will talk about the HUD guidelines for homeowners who are in default with their FHA loan. If you are thinking that a short sale is your best option and you have a FHA loan you may want to ask your Realtor® about the PFS program through HUD.

The Preforeclosure Sales Program allows a morgagor in defualt to sell his or her home and use the sales proceeds to satisfy the morgage debt. Even if the proceed are less then the amount owed. REF: Mortagee letters 2003-19, 2008-43, and 2010-08

So if you are able to get the approval from HUD to particiapte in this program your outstanding balance will be waived, thats of course you complete the short sale with  the approval in this program.

Some of the highlights in this program is 120 days to market your home, HUD will pay an additional amount up to $1,500.00 for the discharge of junior liens after the mortgagor incentive has been paid. HUD will pay up to 1,000.00 incentive to the mortgagor if closed within 3 month from the date of application; thereafter the incentive is reduced  $750.00

Work with a Realtor® who understands the emotional and financial complexities in a short sale. I would appreciate the consideration as your Realtor® to help you through your short sale process.

 Visit www.keystomyplace.com                         Best wishes

                                                                     Christina Simmons, ABR,SFR
713-269-9235 Direct/text