Types Of Short Sales And General Guidelines

TRADITIONAL

HAFA

PFS   (FHA)

CSS   (VA)

BofA COOPERATIVE

General Qualifications

Each situation considered separately by investors.

Participating Investors Only (Loan-by-Loan basis)

Unpaid Principal Balance <$729,750

Primary residence (Property can be vacant/rented <12 months prior to Short Sale Agreement)

1^st mortgage prior to Jan 1, 2009

Outstanding indebtedness includes; unpaid principal balance + delinquent interest + Partial Claim (if applicable)

Tiered Net Proceeds requirement- 88% of appraised value for first 30 days, 86% for second 30 days, 84% for remainder of marketing period.

The compromise sale must be less costly for the government than foreclosure.

There must be financial hardship on the part of the seller.

Non-Owner Occupied Eligibility

Jumbo Loans May Qualify

Non-HAFA Eligible Loans Only

Pre-Approved Short Sale

Jr. Lienholder funds

Negotiated separately in conjunction with 1^st Lienholder

Up to 6% or $6000 offered to Jr. Lienholder(s), who must agree to participate and forgive deficiency.

Up to $1500 to Jr. Lienholder(s)

No Jr. Liens permitted

Negotiated separately in conjunction with 1^st Lienholder

Initiate Process

Begins when a valid offer is received.

Can be used either prior to or after receiving a valid offer.

Prior to or when listing home

Appraisal ordered by lender

“Approval to Participate” generated upon receipt of appraisal.

Begins when a valid offer is received.

Prior to listing home

General Timeline

Good Luck. J

(i.e.; 6-12 months)

If approved prior to receiving an offer, a decision regarding the offer should be reached within 10 business days.

Servicer has 5 business days to review and approve offer once it is received by them.

Varies per Servicer

10 Days from receipt of offer

Cash/Promissory Note

The investor/insurer may require

No

No

Only for loans originating prior to Dec. 13. 1989, accompanied by a payment plan agreement.

The investor/insurer may require

Deficiency Pursued

The investor may retain right

No

No

No

The investor may retain right

Foreclosure Holds

Varies per Investor

Auto-Hold upon approval

Auto-Hold upon approval

Auto-Hold upon approval

Auto-Hold upon approval

Recommended List Price Provided

No

Yes, based on servicer ordered BPO

Yes, based on FHA appraisal ordered by the servicer.

No, however, the property must be sold for fair market value, and a VA appraisal must be done.

Yes, based on servicer ordered BPO

Relocation Assistance

Not included, but may be negotiable.

Yes- $3000

Yes- $1000 if closed within 90 days of Approval, $750 after 90 days

 Up to $2000 if approved by Servicer. VA may not reimburse.

Yes- $2500

Unrealized Short Sale

Optional Deed in Lieu

Automatic HAFA Deed in Lieu after 120 days; relocation assistance included

Automatic Deed In Lieu after 120 days, deficiency forgiven.

Optional DIL after 90 days on market. Must cost less than foreclosure.

Automatic Deed In Lieu after 120 days