The appraisal or BPO is also done within 10 days and prepared for review quickly so that this too does not stall the process or approval If qualified for a streamlined short sale, the borrower may not have to produce any financial documents or prove a financial hardship. Servicers must now use a Deficit Income Test or (DIT) to determine the borrower’s financial hardship. “ Often times, it is a common name and by merely having the borrower seller sign a Non-Identify Affidavit, and submit it to the lender, that will not halt the short sale negotiation and process. ” Jacqueline A. A name examination by a title agent as myself can decipher whether the liens or judgments do in fact belong to the homeowner. And this we are seeing ever so often wherein the short sale lender quickly and without thought, stops a short sale because the borrower has “judgments” or liens against them. The seller and buyer can not be related either by family, blood or business.Īny violation of this is considered a federal offense and violation of federal law.īefore closing, any and all liens and judgments against the seller must be released.Seller can not list the property with or sell to anyone with whom they have a close business relationship.The transaction must be an Arm’s Length Transaction wherein all the parties to the transaction, including buyer, seller and realtor, are required to sign an Arm’s Length Affidavit providing under penalties of perjury that they are not related as follows: The following properties will be eligible: This new Streamlined Short Sale, may no longer require the borrowers seeking a short sale to submit financial information or prove a financial hardship. Effective October 1, 2013, HUD announced new and favorable changes to their FHA short sale requirements for homeowners seeking to short sale their homes.
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