Yes you can do a short sale even if you have a FHA Loan!
With high foreclosure rates still having devastating effects on families, neighborhoods, and the economy the FHA remains committed to assisting families in avoiding foreclosure.
The FHA Short Sale Program is called the “Pre-Foreclosure Sale Program”, or PFS Program.
The PFS Program allows a FHA borrower to sell his or her property and use the sale proceeds in satisfaction of the mortgage debt when the proceeds are less than the amount owed on the loan.
As with any government program the PFS Program does have Key and Unique Features for qualifying to do a Short Sale. Working with a qualified Short Sale Specialist familiar with FHA’s PFS Program is necessary.
The process of Shorting a FHA loan is actually quite streamlined and step by step in comparison to the process of shorting a conventional loan(s). FHA has done a good job of documenting what it takes to qualify as a hardshipped borrower, clearly defining the steps a borrower and their Short Sale Agent need to navigate to achieve completion of a Successful FHA Short Sale. Although the process is adequately documented, the FHA Short Sale process is detailed, timelined, requires completion of key tasks, and needs to be administered correctly and accurately. The ”Everyday Short Sale Agent” may or may not be familiar with the PFS Program and its “details”, be sure to ask specifically regarding qualifications when considering a listing agent…Again, working with an agent familiar with the PFS Program is highly suggested!
I’m Tom Lichtenberg and I am available to meet with you to discuss your Options, Timelines, and Strategies