FHA Loss Mitigation

[CURT VAN HOOSER]

Good afternoon all,

I was offered an appraisal assignment which I was told was for FHA loss mitigation. The requestor asked for an FHA compliant report. I asked for a Case# and was told that it is not required for these types of reports. Apparently, the property may be close to foreclosure and a quick sale is being considered. I have done several FHA reports but this is the first "loss mitigation" I have been asked to do. If anyone cares to comment on their experience with these types of reports, I would be a willing listener (reader)...

Thanks in advance...

PS I recommend wake surfing to any and all water/boating enthusiasts....

 

[JSmith43]

Curt, since no one has volunteered, I will ask you a couple questions. Did they give you contact information? Are you supposed to do an interior inspection? Does the client want two values if the property does not meet HUD minimum property standards?

If you don't know the answers, you should find out, of course. Whomever ordered this assignment probably did it with many assumptions that apparently were not shared.

Someone that does current loss mitigation assignments for HUD care to share?

Better to negotiate SOW with the client directly than random AF posters, but I know you want to sound prepared and initiated when you make the call back.

Someone, throw him a bone!:icon_mrgreen:

 

[CURT VAN HOOSER]

Thanks Mentor!

I was asked to to do a full, 1004, appraisal. The requestor asked for an "as is" report and for me to call out any (if any) FHA repair items in an addendum. I know there is (or was) and addendum for HUD owned properties that is similar to an REO addendum. However, this property is not (yet) HUD owned. My concern involves the FHA Case#. I need to know if it is standard practice for "loss mitigation" work to not have an FHA case#. I can contact both the requester's associate (requester is on vacation) and Santa Ana tomorrow. I just hoped someone would be able to provide a little insight that I could begin using today to save time as I m leaving for vacation Tuesday.

Thanks anyway guys and gals!

 

[Wm. Hattaway]

I have not heard of a FHA loss mitigation appraisal. I am going to guess and say that your requestor wants an FHA compliant appraisal without contacting FHA to get a case number which would register the property. Again that is a guess and I would be interested in how it turns out. Keep us updated.

 

[Doug in NC]

I have done several non-FHA assignments for loss mitigation before. Loss mitigation is a stage that seeks to prevent foreclosure before it happens. It would be a good idea to get clear instructions from your client, but in the instances I recall doing them, I completed reports just like typical REO assignments.

I have also done at least one assignment for FHA loss mitigation, and for that assignment, I completed the report like a standard FHA order. I don't recall any unusual requirements like REO addendum, comparable listings, or more than one value conclusion.

 

[moh malekpour]

Good afternoon all,

I was offered an appraisal assignment which I was told was for FHA loss mitigation. The requestor asked for an FHA compliant report. I asked for a Case# and was told that it is not required for these types of reports. Apparently, the property may be close to foreclosure and a quick sale is being considered. I have done several FHA reports but this is the first "loss mitigation" I have been asked to do. If anyone cares to comment on their experience with these types of reports, I would be a willing listener (reader)...

Thanks in advance...

PS I recommend wake surfing to any and all water/boating enthusiasts....

It seems that this is one of those HUD rescue, which is designed to stop foreclosures for those borrowers who are qualified and their lenders who are cooperative. Borrowers who have sub prime loans and now are at the verge of foreclosures because their mortgage rates are resetting and their home values are declining can apply for this program. Based on this program, HUD gets an appraisal on those homes and then refinances them based on their current market value but there are two conditions for this to happen:
1-the borrower’s mortgage payment should be current and the borrower should be able to pay for this new FHA refinance loan at its current market value
2-The lender who made the original sub prime loan agree to forgive the amount of the loss in value on that property up to the date of this new appraisal.

 

[Greg Bell]

If they are to put a new FHA in place you WILL need an FHA number.If it's standard REO appraisal then no FHA number would be required...

 

[JSmith43]

Moh.. FHA Secure? Maybe. You'd think they'd want a case number for that. I refer those situations out to a special group with LM training/certification, so I don't know for sure.

Curt, when you figure this all out, would you remind reporting back?

Have a nice vacation, but don't forget to give the UW your cell number so he/she can call you with stips

 

[moh malekpour]

Roger, I think they are handled by HUD approved housing counselors but I don't know who are they and how they function. Do you know who are they and how anyone can become a HUD approved housing counselor?

 

[JSmith43]

Roger, I think they are handled by HUD approved housing counselors but I don't know who are they and how they function. Do you know who are they and how anyone can become a HUD approved housing counselor?

I just reviewed the FHA Secure manual. It isn't apparent to me that an FHA counselor is involved. It is more like a loan originator specifically trained to do FHA Secure and working under loss mitigation. Sorry, I have to give generic answers

FHA Secure is a temporary program due to expire at the end of the year. Of course, it might be renewed. My employer will consider originating FHA Secure transactions only for customers from it's current servicing portfolio.
I think that is the way lenders handle these things, for their own portfolio preservation/proactive loss mitigation.

HUD has something on their web site about approved housing counselors, almost certainly with reverse mortgage information. Call ACORN, They'd know:icon_mrgreen: