Flagstar Bank & FHA Short Sales – Jarvis Team Closes Another

Roswell, GA – The Jarvis Team, a RichLife Advisor and Atlanta’s Premiere Short Sale Specialist Team closed another short sale last week.  Located at 620 Pine Grove in Roswell GA, this home was an FHA Short Sale through Flagstar.  There were many hurdles that are common with FHA short sales, but at the end of the day those hurdles are not comparable to other ones associated with non-fha short sales.  Here’s the common problems, or wrinkles with FHA short sales:

• If the bank does not know how to handle them (Bank of America), then your file could be processed then have to go to the back of the line to start over.
• FHA does not pay seller concessions (closing costs), except for 1% if the buyer is getting an FHA Loan
• FHA does give up to $1,000 to the home owner for “moving expenses” however, in many cases this will need to be waived in order to assist the buyer in paying for closing costs.  Some banks like, Citi, make this decision for the home owner, other banks leave it up to the home owner.
• There is an FHA Appraisal done on the property. 
• Different banks use different timelines.  In theory, the home owner and realty should have at least 90 days to sell the property after receiving the pre-approval letter.  In some instances (Suntrust), the time starts when the process starts.

Lucky for the Jarvis Team, this short sale was with Flagstar Bank and they have a highly trained and specialize person handling the file that knew what he was doing.  It helped tremendously.