I purchased my home FHA and now it is 'unsellable'

Ok.. so it sounds like your mortgage guy didn't do a good job of disclosing, or you as a buyer didn't do a good job at reading your loan documents and disclosures, or it's also possible that they pulled a fast one on you... not to worry though.. More than likely, the mortgage company funded the loan on their own line, and when they tried to sell the loan, it wasn't sellable... usually because of a poor job of underwriting.. so they tried to shamboozel you again by telling you that you had to refinance.. and because you didn't respond to that nonsense, they sold the loan at a discount to another loan servicer and took the loss.. so you shouldn't have to refinance, and there shouldn't be any worries for you so long as you make your payments.. and they cannot force you to pay them in full. (assuming you didn't do any thing fraudulently).. if you really want to know for sure, then you should contact a local real estate attorney, or if you cannot afford that, then you can call the attorney generals office for your area, and have them look into it. They should know really quick if something illegal was done to you... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Here is the FHA assistance number to call: (800) 225-5342 You will need the numbers from the top of the HUD-1 form -- to help them figure out what is going on. As mentioned by the other lender there should be an FHA case number on the form -- which would help them answer your question most efficiently.

It sounds to me like your lender closed a loan as FHA, but then after closing there was some sort of issue with the loan, and they were not able to obtain FHA insurance on the loan. Usually this is due to an underwriting mistake, and that the loan never actually qualified for an FHA loan. Sounds like they then tried repackaging the loan to sell if on the scratch and dent market. This has nothing to do with you, and everything to do with the original lender behind the scene. Eventually your loan will end up somewhere. If the terms are acceptable to you, I wouldn't worry about it. If the terms are not, or there are any other issues further, I'd suggest contacting a real estate attorney, or refinancing the loan. Good Luck.

Your final loan docs that you signed all show FHA? Do you have a case number? Have you tried to call FHA/HUD with the case number? Sounds like the original lender made a mistake and then they were not able to sell the loan to investors, since they made an error somewhere, possibly with the mortgage insurance. I would contact HUD with your case number first. I would contact the originating lender and speak to upper management asap so they can help you figure out what happened. You can only lose your home if you default, but you need to find out what happened and go from there. Other posters may have more information for you as well...If you are making the required payments, then the lender who made the mistake is on the hook. But it would be good business to the originating lender, if it was a valid user error, to help them recover the loan. So maybe you can help the lender refinance your loan at their expense...Good Luck

I think William hit it on the head. They tried to sell the loan to their investor, they got caught with a loan that didnt meet the investors requirements, so they had to sell the loan at discount to the new servicer. And as long as you didnt do anything wrong, then you can continue to make the payments to the new servicer. Sounds like they had FHA loan for you, but how they sold it to Select as Conventional, would be a question for attorneys. You cant just change a loan from FHA to conventional, without new disclosures, resigning and re notarizing, since its a whole new loan in entirety and especially without your knowledge or consent. The original lender most likely took a loss, and did not gain by this. I would be interested in how they converted the loan without the proper notarized loan docs showing conventional etc...

If you have a loan, the lender has to honor it. Check you Mortgage Note & Mortgage Bond. All you have to do is live up to the terms. T

If you have no MI payment and the amount is less than expect. I would continue to pay the loan as agreed. Especially in this climate where FHA has a lifetime insurance.

You are suffering from too much information. Just continue to make the lower (no PMI) payments. No one will take your house from you.

Yes, this shouldn't affect you at all. Just keep making the payments to the servicer. There is no doubt that it wasn't eligible for FHA insurance and the initial lender had to sell it off at a discount to a lender who specializes in what we call "scratch and dent" loans. These are loans that for whatever reason were not sellable. You do not have a risk of losing your home at all because what they have sold is the loan "as is", and received their compensation. At this point, your initial lender is out of the picture and may only want to refinance you to make up some of the losses they incurred. If I were you, then I would reject any offers of refinance unless they are in your best interest to do so and continue to make timely payments.