Lakeland FL Short Sale: There exist numerous short sale programs to assist distressed home owners in selling their home. One of these programs is the FHA insured home loans. Letâ€™s take a look at the requirements needed to get your home approved for a short sale under the Pre-Foreclosure Sale (PFS) Program guidelines by the FHA (Federal Housing Administration).
Here are the eligibility requirements to successfully complete a short sale:
Â§Â The home must be owner-occupied, except for cases of job transfer, job loss, divorce, death, and the property was not purchased as a rental investment, or used as a rental for more than 18 months.
Â§Â Homeowner must be 31 days behind with your payment at the time of sale/closing
Â§Â You must have a written proof of decrease in income and your impotence to pay your mortgage through loss of job, death, etc.
Â§Â You must acquire an approval to engage in the FHA/HUD Short Sale program before the application.
Â§Â The home must be actively marketed for 120 days (up to six months) â€“ restrictions apply as to what amount lender may accept:Â First 30 days of marketing the lender (mortgage holder) may only accept offers resulting in a minimum net sale proceeds of 88% of the as-is appraised fair market value (FMV).Â The succeeding 30 days, the lender may only approve $86% of FMV and consequently, short sale lender may result in a minimum of 84% FMV.
Given below are allowed settlement costs:
Â§Â Sales commission not to exceed 6%
Â§Â Up to 1% of buyerâ€™s first mortgage amount if sale includes FHA financing
Â§Â Discharge of junior liens if closing occurs within certain time frames of closings.
Â§Â Reasonable â€œseller costsâ€, such as local/state transfer tax stamps, title search and ownerâ€™s title insurance
Given below are settlement costs that areÂ notÂ allowed:
Â§Â Home Warranty fees
Â§Â Repair reimbursements or allowances
Â§Â Lenderâ€™s Title Insurance fees
Â§Â Discount points or loan fees for non FHA-financing
Please note that these are guidelines hence, may change any time. To know more about how to do a Lakeland FL short sale through this program, just click the links below:
If you need to sell your home as a short sale, feel free to contact Petra Norris at firstname.lastname@example.org for more information.