FHA shortsale Help

To the Pros

I am working a shortsale with National City Mort. They have agreed to postpone the sell. This is an FHA loan.

The property value is 160K the payoff amount is 96k. I am confused about what to offer. They are stating the property must be 63% of the property valve. I have people telling me 82%. What is it. Is it 82% of appraissed value or ARV.

I dont want to offer to low. They are asking me for a contract and the property is to be appraised Monday.

Is there some type of FHA website or book that explain all this.

What is your repair estimate in this? 96k is already about 60% of your ARV. Seems like you may have a deal there even without a short sale. Unless there is substantial damage to the property

Are they doing a simple BPO, or a true appraisal? If it is an appraisal, they could be doing as-is, or ARV. Whichever it is, meet them at the house and walk them through any repairs. Realtors doing BPOs tend not to notice things like missing furnaces and hot water tanks, seeping basements, bad roofs, etc.

I have attempted a few FHA short sales with no luck and no longer even attempt them. Too time consuming, and banks are unwilling to stray from their formulas.

For info on the formulas see:

http://www.hud.gov/offices/hsg/sfh/nsc/faqpfs.cfm