February 19th, 2011 8:29 PM by Preston Ware
It has been a while since my last post. Fair market conditions continue to mosey along. This past week I came across an interesting guideline that I am not quite sure if it was a mistake by the underwriter or something new that we should pay attention to. Fortunately in my case it was not a deal breaker.
The condition on my approval was a limit on what could be paid as a seller concession if I am doing an FHA loan. This was an FHA file that I was doing but the condition read that seller concessions were limited to 1% if the previous loan was an FHA loan. On my deal we needed 3% for the borrower to have enough money to close so potentially this could have been a deal breaker.
Going forward I will remember to go on line and verify the previous mortgages before we go ahead and make a short sale offer.
Most short sales take 2-3 months to get accepted and then a loan takes a few weeks to get underwritten, so by checking this one little rule, we might just save an awful lot of time.