Bountiful UTAH – I recently received a question from Brent. Here is Brent's Question.
"If we are not behind on our mortgage but can't sell our home through a normal sale because we don't have any equity, can we still qualify for a short sale?
We would like to sell this property and get another property where we are not upside down. Thank you!” asked Brent.
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
Here was our answer. Brent, there is actually a federal short sale program that encourages what you would like to do. It is called the FHA 4155 loan program.
It allows a person that is short selling their house to buy another one right away. However, there are a few caveats.
We have been told that you will need the following. (Guidelines can change at any time, so make sure you check them with a Mortgage Professional familiar with the program.)
A. A 640 FICO credit score or better.
B. You must be current on all installment payments and on your mortgage.
C. No bankruptcy or foreclosure on your credit in the last 7 years.
D. The home you are purchasing must be inferior to the one you are selling. I don’t know the exact guidelines, but I think it means it is a smaller home, or it has less bedrooms or a lower price.
E. You will need the 3.5% down payment for the new purchase.
The biggest hurdle will be getting your current lender to approve the short sale. Most lenders will approve a short sale. It just takes time and a little patience.
But, it is a great opportunity to move on from your upside down property and start building equity elsewhere.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (801) 651-0707
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Layton loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, David Forsberg.
David is a Real Estate Agent at Prudential Utah Real Estate - Bountiful. Bountiful Short Sales Realtor.
Phone: (801) 651-0707. utahhomesaver@gmail.com.
Greater Salt Lake & Northern Utah Short Sales. Real Help for those that need it most.
