OK let me clear up my first response incase it was misleading. FHA does short sales, BUT the question was abuot the bank. the bank will not do a short sale on an FHA backed loan. FHA ensures that the bank will collect every penny they have coming to them even if the buyer defaults. FHA has their own set of restrictions that they must follow, and that does include discounting prices in some cases. the bank ni question will not do a short sale IF it is FHA, VA, or other government backed loan.
sorry for the confusion before, maybe ill start using capitals and periods one day and clear all this up before it starts, NAAAAHHHHH, not gonna happen.
I am looking to buy a pre foreclosure and have the financing lined up to buy it from the owner(very motivated). The foreclosure is to take place on the 18th, next tuesday. The mortgage company said that they will postpone the foreclosure to allow me time to get the paperwook together. The lady that I am dealing with was not in the office today so I talked with another. We got on the topic of the current mortgage and I asked if she would discount the price. The loan is six months behind and I plan on purchasing the home outright. Is there any way to get the price reduced a few thousand. She said that a short sale is out of the question. The house appraised at 265k and the current payoff is 206k. I am just asking for the bank to drop off the fees and fines associated with the house. Has anyone had any luck soing this. I need some advise on this. Thank you in advance
the problem yuo are probably facing here is the loan amy be government backed (FHA, VA, etc.). these types of loans are not available for short sales. the bank is garaunteed their money from the government, no sense in losing money by letting you have it cheaper. these other costs yuo are talking about are bank costs and are controlled by the bank. these costs can be discounted by the bank if they desire.