HUD loan. House loan $80,000 LOTS of damage. 45,000 in damages. Owners got screwed over the house was not even close to what they paid for it. Offered 32,000 to North Dakota Housing. Interior BPO was done and a letter came back from them that can’t do a short sell due to the value of the home too low.
I heard that on a HUD that they can only take a % of the amount owed?
James
HUD will only discount the price on a FHA loan. It’s called PMI insurance and it covers the top 20% of the loan balance/Payoff.
Does this help you?
So what your saying is they will only accept 20% off of the amount owed or the appraisal?
The HUD listing price…
…and, in my experience, 20% may be generous. It’s more like 12-15% at least around here. And, remember, you’ll be bidding with other investors for the property.
Keith
Well there is two different number to watch. The BPO and the Appraisal. The BPO is the numbers the mortgage company has on the house when they last sold it or evaulated it. If you contract is close to that they will consider a short sale. NOTE: It can be influenced at the beginning if your offer is to way to justify your low offer. Then if you are in the final stages of the short sale an appraisal must be done. Whatever the final numbers come back at is what the bank will compare to your offer and you can get up to 20% off of that number. NOTE: The mortgage company’s appraisal may be way low or high just depends on the appraiser. Always go with them to view that house and influence their numbers as well.
There are many different methods that work other then these, Go with the flow, you will learn the best way for you in time. This is just my way, not everyone’s
CORRECTION:>> NOTE: It can be influenced at the beginning if your offer to justify your low offer.