Tuesday, 24 January 2012
A common question about FHA Short Sale Seller Incentives
Question: In an FHA Short Sale, can the Seller Incentive be used to cover closing costs?
Answer: In an FHA Short Sale, Seller closing costs that cannot be covered by the Lender or HUD can typically be covered by the Seller Incentive. If the Buyer requests a home warranty, the Seller Incentive can be used to cover this expense. The Seller Incentive can also be used to pay for some other costs, such as delinquent HOA dues, HOA transfer fees and certificates, doc prep fees, and other costs that HUD considers “junk fees”.
Next week we’ll talk about options after the FHA 120 Pre-Foreclosure Sale Period has expired.