FHA Non-Qualifying assumption- Behind on payments! - Posted by SCook85

Real Estate Investing Real Estate Financing
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Posted by Felix on June 03, 1999 at 22:51:15:

Scott:

What’s the name of the HUD workout program?
Would you happen to know what guidelines HUD uses for this program?

Thanks,
Felix

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FHA Non-Qualifying assumption- Behind on payments! - Posted by SCook85

Posted by SCook85 on June 02, 1999 at 09:06:04:

I just came across my first Non-qualifying FHA assumable mortgage for a woman that is behind on her payments. She also claims to have antered some HUD program that reduced the amount of her payments for a period of time so that she could get back on her feet and claims that she owes them that money as well.
I’m trying to determine what type of program she is talking about, do any of you know?
Also, if she is behind on her payments, do I have to make them all up in order to have someone come in and assume them, or will they add it to the back end?

I will post further as I get more info from the note holder.

SCook85

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Re: FHA Non-Qualifying assumption- Behind on payments! - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on June 03, 1999 at 15:45:28:

Scott is right. One additional comment. In our area there’s quite a number of work out properties. The loan is typically transferred to HUD from the original lender. Most of them end up in foreclosure anyway, because their mortgage balance keeps on growing up and up; therefore, after a while the owners owe so much, they are discouraged to keep the property. I’ve seen HUD foreclosing them at the courthouse selling a property with 70K original balance for close to $100K.

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Re: FHA Non-Qualifying assumption- Behind on payments! - Posted by Scott Britton

Posted by Scott Britton on June 02, 1999 at 11:10:34:

SCook85,

HUD has a work-out program for those who qualify. This gives the home owner a second chance. Usually what they do is stack the arrearage on the back end… and continue on with the monthly payments… or a negotiated payment.

Sounds like your lady is behind again (second time). HUD does not allow a work-out for second time offenders… that I’m aware of.

Last one I bought like this… I just had to bring her current arrearage forward… to reinstate the loan.

Hope this helps!

Scott Britton