Short Sale/Simultaneous Closing help with FHA end buyer

[Aly W.]

This is my first short sale, and I'm representing the investor in an A -B, B - C transaction, the investor being B.

The bank has done the BPO and verbally approved a price. My investor is almost on board with that. I've listed the house for him and we've gotten several acceptable offers from end buyers.

Unfortunately, they're all FHA buyers, and FHA lenders will not allow a B - C transaction without the seller (B) being on title the day of closing. Apparently, FHA will not even order an appraisal or take a mortgage app from the end buyer unless that is the case.

Has anyone successfully completed a short sale with an FHA buyer? Thank you!