I have a FHA lender that sent me this BRAND NEW guidleine just yesterday. Here is what she sent to me:
There is a new government program that allows people to do a short sale and move to another more affordable home, with no penalty, so long as their payments are current.
Right now one out of every three homes is upside down in our state, Arizona, and statistics show this is going to continue for up to 10 more years. Numerous other states like Nevada and Florida have similar issues.
The next decade of housing will be suppressed and how exciting that the government is doing something about it. Keep in mind, the program only applies to homeowners who are current and have no late payments. Also, make sure your sellers get pre-approved. It requires a minimum 620 credit score. The program is limited to sales prices of about $360,000 and require at 3.5% of the home price as a down payment. Contact lenders in your area for more information on this new program. Then be sure to educate and inform your clients of this program.
I can send anyone interested in this program to the local broker who is doing this niche program.
Best wishes to all those short sale sellers out there! Donna L Meyers Connect realty