USDA-Rural Development short sale questions!

[edevaisher]

Any luck here -- we are about to deal with a USDA foreclosure.

[Karma kazie 2]

I have a 504 USDA RURAL DEVELOPMENT loan and am being forced to sell my home after 7 years. I don't make that much money and am a couple of months behind on my payments. I simply can't afford my house anymore. How do I get out of this loan without ruining my credit?

[minna_reid]

I have done many USDA short sales as I have been specializing in short sales specifically for almost a decade - it is actually USDA policy that "A borrower who successfully sells the property securing the loan using the PFS option is relieved of the mortgage obligation. The borrower shall not be pursued for deficiency judgments by either the lender or the Agency. " (this is from their guidelines)

Now - your servicer (bank) may or may not know this about USDA backed loans- I have had to provide this language to servicers upon short sale approval to have it included in their short sale approval letters.

If you need to short sell - you really need to be seeking out a Realtor that understands this process 100%.

[minna_reid]

Originally Posted by swordman1990

Hey, how are you?!

I think one of the most important steps to undergo the process of a short sale is to writing a short sale hardship letter with a template to be approved by the bank and the lender.
I will show you how I did it with the help of the following site.
https://www.garybuyshouses.com/blog/...rdship-letter/

I hope this will help you for new sales.

Thanks a lot

Swordman1990

The hardship letter will not be a deciding factor in a short sale. It will be necessary to provide one, but it has very little weight overall. Two sentences is fine - reason for hardship, request for a short sale, signature, that's it. I see my clients pour their heart and soul into these and it makes no difference at all. The sellers financial situation (financial docs) is the deciding factor in a short sale, not their hardship letter.