FHA - HUD Short Sales


FHA - HUD Short Sales

HUD rules for FHA short sales, tips, experiences, etc.

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Latest Activity: Aug 13

FHA Preforeclosure Sale Guidelines


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7-9-13 Updated Pre-Foreclosure Sale (PFS) and Deed in Lieu (DIL) of Foreclosure - Effective 10-1-13.

FHA National Servicing Center 

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National Servicing Center:

FHA Contract Clause

"Sale is contingent upon the seller receiving prior written approval of Insert Name of Lender/Servicer."

FHA Listing Agreement Clause

“Seller may cancel this agreement prior to the ending date
of the listing period without advance notice to the broker, and
without payment of a commission or any other consideration if
the property is conveyed to the mortgage insurer or the mortgage
holder.” The sale completion is subject to approval (under HUD
guidelines) by the mortgagee.


Discussion Forum

FHA Short Sales with Title Concerns

Started by Chad Gelsinger. Last reply by Chad Gelsinger Jul 30. 2 Replies

Divorce, Bankruptcy, and FHA - Oh My! What a fiasco!

Started by Debi Braulik. Last reply by Brett Goldsmith Jul 29. 5 Replies

BofA Short Sale after an FHA loan mod

Started by Jerry Robertson. Last reply by Brett Goldsmith Jul 11. 9 Replies

Comment Wall


You need to be a member of FHA - HUD Short Sales to add comments!

Comment by Pat M on August 13, 2014 at 11:53am

Does anyone know what the current fha seasoning requirements are on a double close?  I know back in 2010 they did away with the requirement for one year but I cant find any info for 2014 to know if it was extended.

Comment by David A. Roebuck on August 6, 2014 at 11:47pm
Has anyone encountered an FHA tax service fee that FHA will not permit the buyer to pay and since it is a Short Sale on an existing FHA loan, that bank won't allow the seller to pay it either. How was it handled???
Comment by Robin Lemmons on July 7, 2014 at 9:31pm

The bank needs to verify that a chapter 7 has been discharged. Without a copy, they will not proceed. Call the attorney or the trustee for your borrowers to check on the status of the home in the bankruptcy documents.

Comment by Jeffrey W Wolff on July 7, 2014 at 2:46pm

Thanks Chad.  I did talk to HUD and they are unclear on this only to say refer to ML2013-23 and all BK guidelines are from 2008-xx.  I have asked Wells to check into the variance request.  We are trying to work around this as sellers will bail on this if we don't find alternate solution.


Comment by Chad Gelsinger on July 7, 2014 at 2:30pm

Jeffrey, it is going to depend on the CH 7 and if the sellers are still liable for any portion of the note. If they were discharged of the loan debt, it will take a variance from HUD to remove the required contribution OR the sellers could choose to walk away. There could be other liabilities (such as taxes/utilities) associated with walking away and they should consult with an attorney. The sellers may have to weigh out their options. Chad.

Comment by Jeffrey W Wolff on July 7, 2014 at 1:41pm

Good Afternoon all.  I have a Wells Fargo FHA short sale, and sellers are discharged Chapter 7(for quite some time now). They then received a small inheritance this year from the death of a parent and Wells based those figures on those bank stmts. 

The ATP was just issued and they want a $2228.29 cash contribution in order to issue approval letter.  I have scoured the FHA guidelines and cannot find anything on PFS as it relates to prior bankruptcy.  Can anyone point me in the right direction?  Seller will never contribute.

Comment by P Nicolas Velecico on June 11, 2014 at 7:49pm

maybe they did not include the mortgage in the BK , I would get proof that the property was abandonned by the trustee and a copy of the petition to show the intention was to include the property in the BK


Comment by Jim Stewart on June 11, 2014 at 5:52pm

Working on an FHA short sale through Wells Fargo. Received the following request today from the WFC processor: "I am stuck on this file right now, I need Bankruptcy Attorney and/or agent to obtain the court consent to sell property. There is a discharged chp7 from 09-09-13."  I've done lots of short sales but I've never received a request like this before. Why would we need a court consent to sell if the BK is discharged??  I would think the court has no jurisdiction over the matter after discharge but I'm no expert. In December I closed an FHA short sale through Bank of America that had been discharged through a Chapter 7.  Neither B of A nor HUD/FHA required anything relating to the BK.  I asked why this was needed and he just responded "I cannot proceed without it." Nice.  Thoughts from the smarter than I am crowd?

Comment by Erik Reilly on June 1, 2014 at 8:14pm

Thanks Joe

Comment by joe beauchamp on June 1, 2014 at 10:48am

I've gotten some good ones from BofA, but never that one. The loan is FHA insured and the investor didn't want to be paid? Yeah. But then I hadn't run into someone with 2 FHA loans, either.

You need to email your authorization to HUD. I find it best to add why you have a problem, but you are supposed to call them. By putting in your reason, usually HUD will call you. If you get a phone answering nimrod (like "that's the way it is" response), call back and ask for clarification or something that will get you to a real analyst. customerservice@deval.us


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