Find out how this seller walked away from her upside down FHA mortgage with Pennymac!
Pennymac is a mortgage servicer that holds a lot of FHA mortgages. The last few years of FHA forbearances, loan modifications and HUD partial claims has left a lot of folks with FHA loans in trouble and owing more than their homes could sell for.
The good news is FHA is currently offering a simplified short sale option to all their borrowers through October 2024.
Behind on the payments and heading towards foreclosure:
Due to a non-paying tenant, my seller had fallen many months behind on her FHA mortgage. Unfortunately the back due payments and fees now exceeded the value of the home and closing costs. A short sale was the only way to cut her losses and move on from the over-leveraged home.
On the market!
The home went on market and a buyer was quickly secured. Pennymac has its issues, but for the most part, short sales with them are predictable and reasonably fast. It took a couple months for us to get through the short sale process but then an FHA short sale approval letter arrived!
FHA short sale approval and closing!
The buyer had some loose ends to wrap up with their loan, which took longer than expected. After a few extensions, this FHA short sale with PennyMac finally closed, with the seller being forgiven all her excess mortgage debt, and with a $3,000 relocation assistance check to boot!
Want to know if a short sale is right for you?
We've been helping homeowners get out of their upside down homes and on with their lives since 2008, and we can help you!
If you are looking for a short sale specialist, look no further. Minna IS the real deal. At first I was skeptical of the thought of short selling our home and the ultimate plan was strategic default, until my wife convinced me to contact a realtor. I came across Minna via searching the web, left her a message, and within minutes she had contacted me. The rest, folks, is history. You will never find another agent as knowledgeable and compassionate about the business of short sales. Her persistence truly paid off in the end, and I will never forget her aggressiveness towards the banks. She is for the little guy, and will do whatever it takes. You need someone like that in your team or you will NOT have a short sale. PERIOD Highly recommended in our books!! A+++
Last Updated on December 28, 2023 by Minna Reid