Nov 26, 2008

Can a buyer using FHA financing make an offer on a short sale or foreclosure?

Can a buyer using FHA financing make an offer on a short sale or foreclosure?

Yes, a buyer who is obtaining FHA financing can make offers on short sales or foreclosure property.

The problems the buyer might encounter could revolve around the FHA minimum required property standards. Minimum required property standards may result in items needing to be repaired or replaced in the home before the buyer will receive full loan approval. The short sale seller or REO lender may not be able or willing to make these repairs.

Make sure your buyer is aware that short sale and REO homes are often listed for sale in as is condition which could prevent the buyer from obtaining financing.

Contact me to discuss your real estate financing questions or use my new home search feature to find the right house for you.


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