Benefits of a FHA Short Sale

• Deficiency is waived
• Homeowner can receive between $750 and $1000 at closing for participation
• HUD will pay an additional amount up to $1,500 for the discharge of junior liens after the borrower’s incentive has been applied.
• HUD allows reasonable costs of the sale including up to 6% sales commission and 1% “Seller’s Costs”
• No cash contribution or promissory note required
• Once approved, the foreclosure process is put on hold for 120 days

FHA requirements for eligibility

• Homeowner has a documented hardship
• Must be an “arms length” transaction
• Property must be owner-occupied
• Exceptions: When it is verifiable that the need to vacate was related to the cause of default (job loss, transfer, divorce, death), and the subject property was not purchased as a rental investment, or used as a rental for more than 18 months
• Borrower must be 31 days or more delinquent at the time of sale

To find out if you are eligible for a FHA short sale in Utah, contact us by Phone at 866-297-3883 or email at info@shortsaleadvocate.cc.