Under the current FHA guidelines for this program, you current lender would have to accept the proposition brought on by the new FHA program. Understand, it is most often going to benefit your current lender to take the offering.
If your current lender takes the deal, they will have to take a lose in the equity position, most often but they would probably take a greater loss if they kept the property on their books.
Your current lender would save money, since they would not have to pay a Realtor to sell the property nor would they absorb holding costs, deferred maintence, utility costs or gardnering costs to maintain the property before it was sold. The property would probably be on the market for 12-18 months which would further degrade the real estate market. This program solves the problem.
Steve
