You can short sale your house if you have an FHA loan. FHA will forgive you of all the debt and does not ask for promissory note. That is the case IF your short selling because of a legitimate hardship. Here is how the process works on an FHA short sale;
You send all of the standard paperwork to initiate a short sale. You will need to include copies of your last 2 bank statements, last 2 years tax returns, and last 2 pay stubs. They will also want a hardship letter and financial worksheet filled out.
The short sale lender will start out reviewing your information. Then, they will order an FHA appraisal. An FHA appraisal has to be done by an FHA appraiser. Only certain appraisers are approved by FHA.
Once the appraisal comes back and the lender has reviewed your documents, they will issue an “approval to participate”. At that date, they are allowed to approve any offer that nets 88% of the appraised value. After 30 days have passed they are allowed to accept 86% of the appraised value.
Finally, after 60 days have passed they are allowed to accept an offer that nets 84% of the appraised value. Here is something that makes FHA short sales easier than normal short sales. You can start the process before you get an offer from a buyer.
Once you get an offer from the buyer, then the lender has 5 working days to approve or deny the short sale offer. If the offer meets necessary parameters, then the rules state that they must approve it. To get a copy of the exact rules for FHA short sale , then simply Google, Mortgagee Letter 2008-43/ These clearly laid out rules make FHA short swales so much simpler than other short sales.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. When we talk, I will explain how the process works in detail and answer any questions you may have.
Thanks for reading this and if you or anyone you know is in need of real estate advice, please do not hesitate to contact me;
Donna Bishop Realtor call me; (239) 560-3149 or email me: firstname.lastname@example.org