FHA Short Sale Program Lets You Sell Fast for Cash and Avoid Foreclosure

FHA Short Sale Program Lets You Sell Fast for Cash and Avoid Foreclosure

If you are facing foreclosure on an FHA Insured Mortgage Loan due to delinquent mortgage payments and fear credit nightmares for years to come there is a solution. You can sell fast for cash through the HUD Preforeclosure Sale Program and get out from under the burden of mounting mortgage payments on your FHA Mortgage Loan.

Pre-Foreclosure Program Helps Struggling Homeowners

The HUD Pre-Foreclosure Sales Program (HUD PFS Program) offers sellers in default or in active foreclosure a different option than being foreclosed on, but you will still need to sell the property fast.

As a seller, you may also be eligible for an incentive, which could be up to $3000  and is reflected on the HUD-1 Statement as a credit back to you. The only requirement is that you must actively try to sell the property or market the home for 120 days.  The first three months and beyond are set about in different ways:

  • During the first month of the HUD PFS Program the mortgage company will approve sale contracts that result in net sale proceeds of at least 88% of the Fair Market Value of the home as established by the appraisal done by the mortgage company.
  • During the second month of the HUD PFS Program the mortgage company will approve sale contracts that result in net sale proceeds of at least 86% of the Fair Market Value of the home as established by the appraisal done by the mortgage company. 
  • After day 61 of the HUD PFS Program the mortgage company will approve sale contracts that result in net sale proceeds of at least 84% of the Fair Market Value of the home as established by the appraisal done by the mortgage company. 

If there is a second mortgage or junior liens on the property the lender may approve up to $1,500.00 to $4,500.00 total to pay towards the settlement of the second mortgage or junior liens.

An FHA Short Sale via the HUD PFS Program will be stressful for you if you do not have an experienced short sale person dealing with the bank for you. Also, if your mortgage loan is in active foreclosure status you will need a sale contract to be reviewed for the FHA Short Sale Program. This is where Nashville Cash House Buyer can help you. We can offer cash for the property quickly and avoid a lot of unnecessary stress by dealing with the mortgage company for you.

This is a much better option for distressed homeowners than to simply let the house fall into foreclosure. Foreclosure stays on the record for far longer and can have much more damaging long-term effects on finances and emotional stability.

If you think an FHA Short Sale might be a good direction for you or someone you know, feel free to contact me anytime for more information and how to get started. I can ask a few questions and get you back on track towards the road to financial recovery.

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