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.
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.
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 28, 2022 by Minna Reid