Last week we received an update that our file had finally made it to the USDA and they had made the determination that they would not accept the offer on the house because they decided that our situation did not qualify us for a short sale. So, it wasn’t a problem with the offer. The bank that holds the mortgage was okay with the offer, but our loan is back by the USDA because it is a rural FmHA loan. So, the USDA has the final say.
We were shocked. Our realtor was shocked. She has done other short sales with the same exact loan situation that we had where a family relocated due to a voluntary job change and the USDA okayed the short sale. The only difference she can see if that those people, when they decided to move, immediately started the short sale process. We didn’t do this. We really wanted to do the “right” thing and keep paying for the house and decided to rent it out. It seems that the government basically sees us people who lost our investment income. Any other hardship we have had in owning that house is not their problem.
It was a huge blow and we now are working through the emotions that go with having our home foreclosed. In the end, it probably wont impact us anymore than having a really big hit on our credit and it would put us in a position of not being able to buy another house for 7 years. It just feels really terrible. It’s humbling, embarrassing, and stressful. We don’t have any other options at this time.
We’ll sign the cancellation with our realtor today and have her notify by the buyer that we are unable to sell it and I will contact the utility companies and tell them the house will be bank owned and to shut off the utilities. At this point, I just want the bank the move forward quickly so that the foreclosure can officially happen with the sheriff’s sale and get the clock ticking on having this behind us.
Thanks for praying for us and supporting us through this.