FHA backed "short pay" loans"

Feds now doing short sales?!?

I closed one today. Only difference was FHA had to approve the final HUD-1. Took about an extra two days. My customer used an FHA loan to purchase the property. How messesd up is that? I am not complaining though. :beer

Two years ago seller got an FHA loan for $167k. Wells short sold it today for 142k. Plus they paid 11k in closing costs.