Posted by Rob FL on February 15, 2001 at 12:57:48:
The mortgage has been assigned to HUD since 1997. They are definitely aware of the mortgage default because we reviewed some paperwork from HUD dated February 2000 and November 2000.
I did speak with their servicing company today and am going to TRY for a short sale. Wish me luck.
HUD and short sales - Posted by Rob FL
Posted by Rob FL on February 14, 2001 at 15:45:31:
I met will a seller this afternoon who has an FHA mortgage that is in arrears. The pricnipal amount owed is about 49K. It needs about 5K in repairs and should retail at about 85K. The big problem. She hasn’t made any payments on the mortgage since 1995. Meaning she owes about 35K in back interest and taxes. This pretty much ruins the deal.
Now my question is does anyone know if HUD will take a short sale on the property. I know normally they do not, but I wonder if they only insure the principal owed or do they insure the principal plus everything else owed. Anybody have any experience with this?
HUD can be difficult even illogical, but - Posted by David Krulac
Posted by David Krulac on February 14, 2001 at 19:51:36:
if you don’t ask you won’t get. I came across a HUD owned property that they apparently lost in the shuffle. The FHA mortgage hadn’t been paid in TEN YEARS. The house had been abandoned and no repairs or maintenance in at least ten years. The property was truly worth as-is $10-15K. Well those nice folks at the government said that they would “let us have it” for only $75,000. Oh, they let us have it alright, just we would let them have it and walked away. Your tax dollars at work!
No paymenyt since 1995 - Posted by BillW.
Posted by BillW. on February 14, 2001 at 16:50:59:
Rob, Yikes! What you need to do is check and see if her bank was one of those that was bought out in a merger.Sometimes, when that happens, they lose the paperwork and never even know the mortgage exists. If this lady has not paid in 6 years, how come she never received any notice of default from the lender? Get this property tied up pronto, subject to checking out the mortgage, then get to the county records and see if there is any paperwork.
BillW.