I'm looking to purchase a home, and have found one that I love. The house is a short sale, and the lis pendens has been filed. The current owner financed with a VA loan, and is using a loss mitigation company to handle the short sale. The company is requiring the buyer to pay a $1,000 loss mitigation fee at closing. I'm using a USDA guaranteed loan for financing. Do USDA guidelines prohibit the buyer from paying the mitigation fee? I know FHA prohibits this, but I wasn't sure about USDA.
Can anyone provide some insight?
USDA Loans and Loss Mitigation Fees
Started by
Genna
, Jun 12 2012 05:13 PM
3 replies to this topic
#1
Posted 12 June 2012 - 05:13 PM
#2
Posted 13 June 2012 - 06:52 PM
Bump
#3
Brian B The Loan Professor
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Posted 13 June 2012 - 08:28 PM
I personally have NEVER heard of a buyer being asked to pay a loss mitigation fee - maybe it is common in some places but not something I have experienced or can answer
B
B
#4
Posted 13 June 2012 - 09:20 PM
I personally have NEVER heard of a buyer being asked to pay a loss mitigation fee - maybe it is common in some places but not something I have experienced or can answer
B
Thanks, Brian. I appreciate your input.
Actually, the loss mit company's paperwork states that they will attempt to recover the fee from the seller's lender, but if they're unsuccessful, the buyer will be responsible for paying it.
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