$40,000 forgiven in this MB Financial Bank short sale success! - Reid Real Estate Group
April 1, 2019

$40,000 forgiven in this MB Financial Bank short sale success!

HUD Partial claims often lead to trouble, but there is still a way out! Find out how one seller walked away from over $40k of bad mortgage debt in this FHA short sale success with MB Financial Bank!

When my seller first called me a few years ago, she had fallen behind on her FHA mortgage and was facing foreclosure.

She was considering selling, and had enough equity that a traditional sale was possible. She decided to modify her loan in order to “save the home” instead, and in the process acquired a HUD partial claim.  

stop foreclosure

While HUD partial claims make FHA loan modifications possible, they are never forgiven, and must be paid back in full​.

A few years later she contacted me again. Despite the loan modification, she was still struggling and had finally decided to sell and move on​.​ The debt against the home was now so high that a sale of the property would be insufficient to clear the mortgage and the partial claim, leaving a short sale as the only way to get out of the home.

short sale sign

We listed the home and a buyer was soon secured. MB Financial moved efficiently to get  the short sale processed, and within 2 months an approval letter was received!

The short sale closed with the HUD partial claim being paid in full, the seller being forgiven of over $40,000 of mortgage debt, and even ​walking away with a $3,000 relocation assistance check!

​Have you gotten into deep debt with a loan modification and now need to sell? WE CAN HELP!

Last Updated on April 1, 2019 by Minna Reid

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

Click Here to Leave a Comment Below

Leave a Reply: