Wow, not sure what happen with my first post, but it seemed to disappear and the 2nd was a rewrite, so my apologies for the redundancy. I've been calling 800-225-5342 for the claim update. Below is an email the woman sent to me today after speaking with her on guidelines. I will attempt to call and escalate tomorrow. Going by the below, its a little unclear which guideline we'd actually fall under. Im not sure what the differentiator between a preforeclsure sale and FHA pre foreclosure program. We were urrent on the loan prior to entering the short sale process, but the bank required us to be 30 days late before entering the shortsale program. I'm guess that means we fall under the pre-foreclosure program and our eligibility is based on the date the claim was paid, which we don't know unless FHA connection or HUD can answer or Wells Fargo is kind enough to provide the information in response to my written request (not really holding my breath). I did just get a call from the congressional rep, so hopefully their inquiry will help.
Email from FHA connection:
Thank you for contacting the FHA Resource Center, a response to your inquiry is provided below. If the information does not fully address your question, please forward this email (do not reply) to
answers@hud.gov, and provide additional information so that we may better serve you. You may also speak directly to a customer service representative by calling 1-800-CALL-FHA (1-800-225-5342) or visit our online knowledge base at
FHAFAQ, 24 hours/7 days a week.
FAQ: What are the guidelines for borrowers with a short sale on a previous principal residence?
When a previously owned property was sold for less than what was owed (short sale), borrowers are considered eligible for a FHA insured mortgage if, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale.
Borrowers that were in default at the time of the short sale (or pre-foreclosure sale) are not eligible for three years from the date of the sale.
Borrowers who sold their property under the FHA pre-foreclosure sale program are not eligible for three years from the date that FHA paid the claim associated with the pre-foreclosure sale.
Lenders may make exceptions for borrowers in default at the time of short sale if
• The default was due to circumstances beyond the borrower’s control (such as death of a primary wage earner, long term uninsured illness, etc.); and
• The credit report reflects satisfactory credit prior to the circumstances (beyond the borrower’s control) that caused the default.
Borrowers who pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchase a similar or superior property within a reasonable commuting distance are not eligible for a new FHA insured mortgage.
ML 09-52
Handbook 4155.1: 4.C.2.I
DISCLAIMER: All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.
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