FHA Payment Assistance Cancellation?

[Anonymous]

When I took my FHA loan out, I was given $4000 assistance. I now plan on selling my house however, due to decline markets all over the country (my city is not one of them though), my house has been given a CMA of $130k (low) and $135k (high).

When the house was purchased 2 years ago, I paid $136k for the house but now the overall value of the house is less than what I paid.

I requested a payoff statement from my bank. My payoff as of today would be $135k (that's including the 4k assistance). Has anyone requested cancellation of this kind before? Is this something that can be done?

I wrote a letter to my bank and FHA with the info given above. It has only been 2 days since it was sent.

[Myhearts]

I don't think that you get to cancel that assistance.  I got a grant before (down payment assistance) and when I refi'd I had to pay that back.  As long as you are in the house the number of required years before refinancing or selling, you wouldn't have to pay it back, but if you do either of those, you will have to pay it back. I think they go by percentages of what you would pay back based on how long you have lived in the home. 

Hearts