Short Sale on FHA Loan? - Posted by James (FL)
Posted by James (FL) on July 20, 2003 at 22:08:32:
I recently got a house under contract today definitely in need of a short sale. The only problem is, I have no short sale experience
FMV is $115 fully rehabbed.
the seller owes $95K to Chase. 88K principal, and 7K in arrears. It is an FHA loan. Is there anyway to know exactly what Chase will get from HUD if they let it go to foreclosure? I know it is ensured for 80% but is it 80% of the original loan amount or the new balance? Also, the home is in need of many repairs. A completely new kitchen (cabinets appliances and tile) a new ehating and air unit (it is 17 years old and died) carpet and paint througout, and there is apparently a leak above one of the bedrooms so it may need a new roof (probably does). I am thinking about $15K for a total rehab. Does HUD factor all of this in before they pay off Chase for the defaulted FHA loan? Knowing what the bank could expect to get in 3 months from HUD could grwatly improve my negotiations with Chase.
Also, my wife works in the Final docs dept of her mtg co. Chase sent over an order for copies of some docs on this exact house that they MUST HAVE to complete the foreclosure according to them, and she is handling it (purely coincidence as I was already speaking with the sellers before she ever got the order). If she takes an extra few days filling their request, is this to my benefit? Maybe not ethical, but just thought that it could delay the foreclosure process that much further =)
Any advice is appreciated… oh, and in the process, I think I got a new way to locate foreclosures… my wife~!