Today I wanted to talk to you about your FHA loan and a situation that some of you may be in. If you’re in a house with an FHA loan and need to sell but it’s not worth the amount of the loan, what are you going to do? FHA has been around for quite some time and they have a program called the FHA Pre-Foreclosure Sale Program.

There are a number of steps to successfully navigating that program, one of them being having difficulty making the payments and no longer needing the house. If you still live in that house they will review retention options for you, which is just another term for a loan modification. If they review you and aren’t willing to do the loan modification the next option becomes a short sale. If you do need to do a short sale, they’ll give you approval for the program, do an appraisal on your home; there are all mathematics that goes into what type of figure they’re willing to accept as a reasonable offer on the home. There are several nuances and complexities to this program.

I’m not telling you all of this to scare you aware from the FHA Pre-Foreclosure Sale Program; I’m actually telling you all of this to set myself apart from what you may hear in talking to another real estate agent. The process with FHA is near and dear to us because we do short sales with them on a regular basis. One of the other things is that they’re now allowing up to a $3000 incentive to the homeowner to complete a short sale instead of walking away from the property.

If you have an FHA loan and have stopped making payments or know the day is coming where you won’t be able to make payments, I’d love to talk to you about their program and the benefits of it. We can see if it will work for you and your situation.

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