Blog | Changes to Short Sale Requirements

26

Sep
2013

Changes to Short Sale Requirements

Effective October 1, 2013 U.S. Department of Housing and Urban Development (HUD) has announced the following changes to their Federal Housing Administration (FHA) Short Sale requirements:

  • New or different documentation requirements for verifying assets, income, and expenses
  • Deficit Income Test (DIT) will be used to determine a homeowner’s financial hardship
  • 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
  • New validation requirements for appraisals
  • Different 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

 


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