FHA mortgage forgiven in this Pennymac short sale success!




short sale with FHA

Find out how this seller walked away from her upside down FHA mortgage with Pennymac!

Pennymac is a mortgage servicer that holds a lot of FHA mortgages. The last few years of FHA forbearancesloan modifications and HUD partial claims has left a lot of folks with FHA loans in trouble and owing more than their homes could sell for.  

The good news is FHA is currently offering a simplified short sale option to all their borrowers through October 2024. 

Behind on the payments and heading towards foreclosure:

Due to a non-paying tenant, my seller had fallen many months behind on her FHA mortgage. Unfortunately the back due payments and fees now exceeded the value of the home and closing costs. A short sale was the only way to cut her losses and move on from the over-leveraged  home. 

Jacksonville short sales

On the market!

The home went on market and a buyer was quickly secured. Pennymac has its issues, but for the most part, short sales with them are predictable and reasonably fast. It took a couple months for us to get through the short sale process but then an FHA short sale approval letter arrived!

FHA short sale approval and closing!

The buyer had some loose ends to wrap up with their loan, which took longer than expected. After a few extensions, this FHA short sale with PennyMac finally closed, with the seller being forgiven all her excess mortgage debt, and with a $3,000 relocation assistance check to boot!

Wondering if a short sale might be right for you?

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I reached out to Minna when we were first considering a short sale. I didn’t know much about the process or how it worked so naturally I had a ton of questions. She answered all of my questions as well as explained the process in detail so I would know exactly what to expect. Several months later, we kicked off the sale. I had heard so many horror stories about what can go wrong in a short sale so I was very uneasy. With Minna’s expertise the process was so much smoother than I could have ever anticipated! It was just over three months from the time we listed to closing (which is fast for a short sale)! Minna’s responsiveness and dedication along the way was a huge asset!! It’s because of her that our family is able to put the past behind us and move on to bigger and better things! I highly recommend her!


Last Updated on January 10, 2024 by Minna Reid


January 10, 2024

FHA mortgage forgiven in this Pennymac short sale success!

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