FHA Equator Short Sale Processing Rolled Out

The world of short sales are always changing; the guidelines and the mortgage servicers systems evolving. A news letter was issued sometime last month from Bank Of America stating that FHA short sales would now be processed through equator. A FHA short sale is technically a short sale that goes through the Pre-Foreclosure Sales Program. This is a program that the Housing and Urban Development (HUD) offers for distressed homeowners looking to complete a short pay on their property. Typically FHA will not pursue borrowers for a deficiency judgment if a short sale is completed successfully.

It will take some time for the other services to follow suit and implement these changes as well, but we have now officially seen FHA files initiated and being processed through equator. FHA Equator short sales look good so far and appears that it may be a positive for Bank Of America mortgage servicing. Hopefully this will help clean up some of the mess that Bank Of America has made with the handling of so many of these FHA loans and condense short sale review time frames in the process.

For assistance in processing a FHA loan through equator or any short sale, please fill out the form below.

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