Short sales are generally never quick and easy, but once in a while we are pleasantly surprised!
After a bad experience with a property manager, our Connecticut home owner found herself with a vacant property worth less than the mortgage value, while she tried to manage the situation from several states away. Without rental income she had fallen behind on her payments and was looking for a way to avoid foreclosure.
FHA loans can be very forgiving but their criteria for approving short sales is pretty strict. Once you move out of any home secured with an FHA mortgage – the only way to qualify for a short sale is with the FHA streamline short sale.
Fortunately my seller quickly qualified, and her lender Pennymac moved with lightning speed to get the short sale processed. While it took almost 3 months to secure a buyer, the short sale approval letter followed close behind, and 6 weeks later this short sale closed with the seller walked away fully forgiven of over $40,000 of mortgage debt!
Last Updated on March 16, 2018 by Minna Reid