This home at 352 Hwy 2, DeFuniak Springs, Florida has been approved as a HUD Pre Foreclosure sale by Bank of America. It was approved 23 days after submitting the short sale contract, buyer proof of funds and HUD. But that is not the whole story.
When doing an HUD (also called FHA) Pre Foreclosure sale, you can get the sale price approved in advance. Your seller should apply to his lender to see if he qualifies. Doing this at time of listing or before, you can really speed up the approval of a contract. You see, by getting the short sale lender the seller financial documents and request to participate, they will order an appraisal. That value is shared with the seller and the listing agent.
In this case, Bank of America took four months to send the HUD package to the seller after application. It took them almost four more months to issue an “Approval to Participate“. By that time we already had a contract submitted that more than covered the appraised value.
This lengthy process with Bank of America’s HUD PFS program may have been an anomaly. My advice to short sale listing agents and sellers, is to apply as soon as you know you want to go forward with the program. This will save you valuable time when you finally get a buyer.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy: [email protected]