Posted by Chicago Chris on April 19, 2006 at 22:48:58:
I’m dealing with the 63% requirement right now. I’ve been working on a short sale on a crackhouse for 3 months. It has a FHA loan. The bank says the BPO came back at 60% of indebtedness and that is too low. Therefore they won’t stop the sale!
I said I’ll pay you based on 63% but they still said no. I said, “So essentially you’re telling me that you won’t take more than the house is worth on a short sale based on your own appraisal because FHA guidelines forbid it?”
“Yes.”
“Even though the guideline is meant to protect against your taking too LITTLE for the property and I’m willing to offer you more?”
“Yes.”
The 3% difference is about $4,000.
What really stinks is that the appraisal was done last Monday and I’ve been begging them to tell me the numbers because I know that the property is set for auction for this Friday, the 21st.
I called on Monday and they said they’d postpone the sale.
I called on Tuesday to confirm that they’d stopped it and they told me “not yet” but they’d stop it by the end of the day.
They called me at 3 pm today to tell me that they didn’t and they wouldn’t because the appraisal is too low. So I now have 24 hours to figure things out!
Plus, my sellers have already filed BK before and had it discharged a couple of months ago and I probably couldn’t get them to get it together in time to file tomorrow anyway.