Making an Offer on an FHA/HUD Short Sale

November 19, 2010 Leave a comment

HUD’s PFS (Pre Foreclosure Sale) Program is unexpectedly straightforward. Especially given the myriad of conventional short sale horror stories we’ve been reading and hearing about over the past three years.

Three, clearly written pages providing guidance on how to achieve a successful FHA/HUD Short Sale. What a great tool for both Seller AND Buyer agents!

HUD’s PFS Program is, and has been, FHA’s clear cut version of the complicated, non-enforceable, HAFA Program.

If you’re the listing agent, you can request a copy of the lender’s FHA appraisal and then, simply do the math.

FHA As-Is Fair Market Appraisal = $150,000
Home has been on the market 90 days
Net sale at 84%, with 1% contribution to buyer’s FHA loan closing costs, 6% real estate commissions, and another 1.5% in title fees and tax prorations
Results in the homeowner, and their lender, being approved to consider an offer as low as $137,000

If you’re a Buyer’s agent, think what a great service you can offer your client, especially in today’s real estate market where many are hesitant to make the homeownership commitment. You can be showing your clients homes up to 10% above market value (or list price if the listing agent has done their job correctly), and actually achieve an equity position for your client. Plus, generally speaking, homes listed at $150,000 will offer a much better selection for your Buyer client to choose from than the listings at +/- $140,000.

Click Here for more tips on buying in today’s real estate market.

Thanks for reading – hope you’ll share.

Your CDPE® Certified Distressed Property Expert,
Kim Novak, RE/MAX Masters
kimnovak@remax.net
(801) 726-1443

Filed under FHA/HUD PFS: Pre Foreclosure Sale Program, HUD Homes (FHA Foreclosures), Real Estate, Short Sale Market Tagged with , , , ,

About Kim Novak, REALTOR®
Your Guide to Finding Home in Utah I love being a REALTOR®! And that passion is the foundation of my relationship with, and service to, my clients. At the center of my success are my clients and my commitment to be there when they need me, to aggressively protect their interests, and to professionally handle all the aspects of their real estate sale or purchase - from the moment we first meet, through closing and after. My business model is such that I do not delegate our relationship to an assistant or team member. Although I have an extensive support system that keeps my business running smoothly, it operates in the background. When I commit to represent a Buyer or Seller, I am available via call, text, email and direct message, including Facetime, Facebook and Zoom - nights, weekends and holidays. On a personal note, I have a wonderful life made especially so by my amazing sons, my beautiful daughter-in-law, adorable grandchildren, and my cute doggie Eliza. They are at the heart of everything I do. Although I am not from Utah originally, I have called our beUTAHful state home for many years and have never grown tired of our mountains, the gorgeous sunrises & the majestic sunsets. I am proud to have served our country as a US Army Veteran. I’d be honored to be of service to you! Kim Novak, Broker/Owner - Novak Advantage Real Estate A Veteran-Owned, Woman-Owned Real Estate Brokerage At Home with Diversity, Green, Proud to Have Served (801) 726-1443 kim@novakadvantage.com FindingHomeinUtah.com Résumé Summary: 25-Years Experience * Over 1,000 Real Estate Sales * 97% Business by Referral Serving: All of Northern Utah including Layton, Hill AFB, Davis County, Greater Ogden Area, Weber County, Brigham City & Tremonton, Box Elder County, Mountain Green & Morgan, Salt Lake City Metro, Salt Lake County Hill AFB Military, Veterans, Government Civilians, Defense Contractors Weber State University Faculty & Staff Davis, Weber, Ogden & Box Elder School Districts Teachers Aerospace Engineering & Manufacturing IRS: Internal Revenue Service Relocation Inbound and Outbound: PCS & DNRP, Corporate Relocation Moving Up; Downsizing; First-Time Homebuyers Changes in Location, Lifestyle and Living Arrangements Buyers; Sellers; Investors; Builders Existing Homes, Townhomes & Condos; New Construction; Lots & Land; Second-Homes & Recreation/Vacation Properties Awards & Recognition: RE/MAX® Hall of Fame RE/MAX® Lifetime Achievement Award Salt Lake Board of REALTORS® Hall of Fame Northern Wasatch Association of REALTORS® Top 250 Producers Northern Wasatch Association of REALTORS® Lifetime Sales Master Degree, Designations & Certifications: BSBA: Bachelor of Science in Business Administration ABR: Accredited Buyer Representative AHWD: At Home With Diversity Certification CIPS: Certified International Property Specialist CRB: Certified Real Estate Brokerage Manager CRS: Certified Residential Specialist CSP: Certified New Home Sales Professional e-PRO: Certified Internet Professional GREEN: NAR Green Designee GRI: Graduate REALTOR® Institute MRP: Military Relocation Professional RENE: Real Estate Negotiation Expert RSPS: Resort & Second-Home Property Specialist SFR: Short Sale & Foreclosure Resource SRES: Seniors Real Estate Specialist SRS: Seller Representative Specialist Professional Affiliations: • NAR National Association of REALTORS®; RPAC Sterling R Major Investor; UAR Utah Association of REALTORS®; NWAOR Northern Wasatch Association of REALTORS®; UtahRealEstate.com Multiple Listing Service • REBI Real Estate Business Institute; RRC Residential Real Estate Council; REBAC Real Estate Buyers Agent Council; The Green REsource Council; SRES Seniors Real Estate Council • A+ Rated BBB: Better Business Bureau Accreditation; Davis Chamber of Commerce; Box Elder Chamber of Commerce

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