Las Vegas Real Estate Agents

 YOU MAY BE ENTITLED TO $1000 CASH BACK ON YOUR SHORT SALE!!!!Lately, FHA short sales are a great process.  A very specific process has been established by HUD (Department of Housing and Urban Development) that is required to be followed when doing an FHA short sale.  This causes the lenders to adhere to specific steps and moves the process along much easier.

WHAT IS IT - AND HOW DOES IT WORK?

1. FHA requires at least one of the owners to be occupying the home at the time of short sale.
    
2. The seller MUST be at least 31 days delinquent on the loan.
    
3. The seller must inform the lender of intent and follow appropriate steps prior to accepting offers on the home. This is the pre-foreclosure program which allows the lender to order an appraisal. The appraisal then sets the fair market value of the property. The HUD form 90045 will state the appraised value and is issued to the seller.
    
4. The seller has 90 days to sell their home under agreement terms from the acceptance date into the pre-foreclosure sale program. During this time, the lender is required to postpone foreclosure proceedings.
    
5.  The minimum net proceeds (this would be purchase price minus all closing costs, realtor commissions, liens and judments, etc.) to the FHA 1st mortgage is based on the time line below. NOTE: EXCLUSIONS TO CLOSING COSTS: The closings costs paid by the lender SHALL NOT include a home warranty, HOA delinquent dues, HOA transfer fees or the water/sewer escrow.  The $1000 incentive to the seller may be used for these costs.
    "As-Is" Appraised Value AND Lenght of Time From Date of Approval:

                  Less than 30 days = 88%       30-60 days = 86%          61+ days = 84%. 

AND - HERE'S THE BEST PART - According to these guidelines FHA will issue $1,000 to the seller provided they are under contract AND CLOSE within this 90 day period! If the seller is under contract during the 90 day period, but fails to close until after the 90 days, the incentive is reduced to $750.000.


In the event that there is a payoff due to a junior lien holder (such as a mortgage payoff), FHA will allow up to $2500 to go to the lien holder, but the seller will forfeit the $1000.

If the buyer is using conventional financing, HUD will not pay buyer closing costs. If the financing is FHA, a maximum of 1% closings costs will be paid on behalf of the seller. Bidding up the purchase price to cover concessions will not be permitted. Again, the $1000 incentive may be used in these cases to achieve the balance required to close.