FHA UPDATES THEIR PRE-FORECLOSURE SALE (SHORT SALE) PROGRAM STARTING 2025!
FHA has been making lots of changes lately to their loss mitigation programs ever since the Covid days. While Covid era workout solutions are sun-setting in April this year, there are some new permanent changes to their short sale program (PFS).
NO MORE FINANCIAL DOCUMENTS
While bank statement, tax returns and pay stubs were generally required in every short sale, these documents will no longer be required as part of the short sale process.
61 DAY DEFAULT IS REQUIRED
You must be at least 2 months behind on your mortgage payments in order to be approved into the FHA PFS program.
SELLERS GET $7,500 RELOCATION ASSISTANCE
Owner occupant sellers will receive $7,500 of relocation assistance at closing of a successful short sale, assuming there are no junior liens or other unusual fees against the property.
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Last Updated on January 21, 2025 by Minna Reid