Archive for September, 2011

HUD homes are those being sold by HUD.
If such homes are indicated as “IE” this means that the FHA loan on it (203b) can be insured by HUD with Escrow Repairs. So “IE” means “Insured With Escrow Repairs”.
Only repairs below a total of $5,000 can qualify for this type of FHA financing and meet minimum property standards required for an FHA mortgage.
The “repair escrow” that’s set up will be done in coordination with the FHA Lender and the work has to be completed within 90 days. The amount of money to be deposited into that “escrow” is determined based on Contractor ‘bids’ and has to be funded at the same time the FHA 203b Purchase money mortgage loan is funded.

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Rules For Buying After Bankruptcy, Foreclosure & Short Sale Class

Rules For Buying After Bankruptcy, Foreclosure & Short Sale Class

Our Free Class For Real Estate Agents yesterday, held at the SRCAR (Board) was a terrific success! Great feedback from Agents who said it was super informative!

The topic was ‘Rules For Buying After Bankruptcy, Foreclosure or Short Sale’

For more information call 877-332-9703

 

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What Are FHA Rules For Buying A Home After Short Sale?

HUD that oversees FHA came out with the Mortgagee Letter in Dec 2009 which essentially gave FHA’s blessing for buyers who were forced to short sell their homes to be able to buy a home just 1 day after short sale!

Here’s the rules

Buyers are NOT eligible if

They are exploiting declining market conditions to be able to purchase a home of similar or superior size within a reasonable commuting distance. This means ‘moving up’ is not allowed.
They were behind on their mortgage at any time in the 12 months leading up to the short sale.

Buyers ARE eligible if:

They were forced to short sell their home due to some situation beyond their control such as death of a wage earner, relocation, job or income loss, onset of sickness or illness etc.
They were on time on their mortgage payments for the 12 months preceding the short sale and had only a 1 x 60-day mortgage late in the 24 months preceding the short sale.
There’s no deficiency balance resulting from the short sale. In other words the Lender settled for less than full balance.
The loan involved in the short sale cannot have been an FHA loan.

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