Effective 10/1/13 HUD has announced the following changes to the FHA Short Sale Requirements:
- There is a new dual agency/brokerage requirement: to meet the new short sale purchase contract addendum requirements, brokers and their agents may represent either the buyer or the seller, but not both parties
- There are new or different documentation requirements now for verifying assets, income, and expenses
- There is a Deficit Income Test (DIT) that will be used to determine a homeowner’s financial hardship
- There is the possible elimination of the financial hardship/deficit income preforeclosure sale requirement for:
- service members who have received Permanent Change of Station (PCS) Orders, or
- homeowners who are deemed eligible for a streamlined preforeclosure sale option
- There are new validation requirements for appraisals
*This information is not intended to be legal advice. This information is subject to change, please contact us for more information.
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