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We are Trying to Get Our Short Sale with Bank of America Completed on Our FHA Mortgage. – Shawn

“Dear Steve,

We currently have an FHA loan through B of A, it has been a struggle but we have remained current. We are going through a short sale currently, Bank of America is the primary & only lender involved. Our home is likely worth $80-100,000- in today’s market, but we owe $240.000. We started this short sale process at the end of September- still waiting for a negotiator to be assigned. Of course I have been reading all I can to educate myself regarding B of A tactics.

When asked, about the HUD approval letter- B of A responded that the negotiator will request the letter when assigned. Per HUD guidelines the date on the HUD letter, is the start of the short sale process. From what I can tell, this letter should have been requested in Oct. ( 2 months ago) HUD’s closing is 1% or less, depending the buyer’s loan. B of A requests 5% at closing. I’m just trying to uphold my credit (as much as possible) and get through this alive. Can B of A handle this as they see fit or do we have any recourse ? I’m totally confused. Seems as though the lender would want to be included in the HUD program to re-coup anything they could in addition to the sale.

Shawn”

 

Dear Shawn,

I’m afraid I’m going to have to pass you on to a mortgage specialist. I think you should follow the link and contact a HUD housing counselor in your area that deals with these issues daily.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Monica

    Are there any rights to the buyer of a short sale home? We signed a contract in October 2009 to purchase a short sale – Bank of America course. BOA just sent a pre-approval on April 12, 2010 (the day the contract was set to expire). The realtor sent back a response right way and it is now May 1, 2010 and we have not heard any news regarding the final approval so that we can go forward with closing. This has taken almost 7 months and we are too far in to turn around.

    We got the house approved for move in. Our lease runs out next week and we will not have a place to stay. We did not anticipate waiting this long for an approval. The sellers are willing to rent the house to us for a certain fee? Can this be done?

    Again is there any rights to the new buyers? Can you render any advice to us.

    Signed,
    Very Stressed!

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