One of our top producing Realtors told us this week that none of her Bank clients are accepting FHA offers if there are alternative Conventional or Cash offers, even if the latter are at a lower price. This amazed us b/c FHA is now so much easier and so much more flexible.
We have a $300,000 FHA purchase in our office with a large seller credit for closing costs. The total “cash to close” is about $12,000. The appraisal came in low but the seller would not bend on the price. As a result the buyer had to come up with an additional $4,000. This was easy for him to do b/c his “cash to close” was minimal to begin with. And even if he did not have the cash, FHA would have allowed him to obtain a “gift”. If this had been a conventional transaction, we suspect the low appraisal would have been more problematic.
Only 12% of all sales in the U.S. were short sales in 2009. But, according to one of our secondary market analysts, banks are now far more willing to negotiate short sales (they have come to their senses) if: (1) the property is “upside down” (2) the borrower is behind in payments; and (3) the borrower is facing a legitimate hardship.
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646