FHA - HUD Short Sales


FHA - HUD Short Sales

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

Fax LOA:  918-236-3274

PH 877 622-8525

Members: 580
Latest Activity: Mar 6

FHA Preforeclosure Sale Guidelines


 Click The Button Now To Hire A Short Sale       Superstar To Support You.


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

FHA National Servicing Center 

(877) 622-8525 Customer Service

1-800-489-1733 Fax

1-866-808-5050 Fax for LOA


301 NW 6th Street, Suite 200
Oklahoma City, OK 73102
National Servicing Center:


Please note that effective October 1, 2014, Deval LLC will no longer be HUD's National Servicing  loan servicing contractor. The new contractor, Novad Management Consulting will be your new point of contact.


For all Customer Service questions please contact [email protected]

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

NOVAD as 2nd lien

Started by Noelle Battle. Last reply by Jason Sanseverino Mar 6. 3 Replies

FHA short sale with Partial Claim

Started by Mike Rosania. Last reply by Jim Stewart Feb 21, 2017. 10 Replies

Reverse Mortgage with HELOC

Started by Lisa Jalufka. Last reply by Brett Goldsmith Jan 31, 2017. 1 Reply

Comment Wall


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

Comment by Bryant Tutas on April 23, 2012 at 7:14am

I've done these several times. Shouldn't be an issue. It would help if you can provide the divorce filing paper work.

Comment by Jim Schneider on April 23, 2012 at 6:33am

New situation, Wells Fargo FHA mortgage. Loan is current, but seller's are divorcing. Will Wells and/or HUD consider divorce "imminent default"? Neither spouse currently has means to make the mortgage payments on their own. Please write back if you've had this one.

Comment by Wendy Smith on April 16, 2012 at 9:42am

good morning - I can't seem to find the contact info for Darrell Powell. 

would someone please share?  thanks

Comment by Kathleen Lordbock on April 13, 2012 at 2:15pm

Thanks all- I have done a few other FHA-HUD SS but this one started out too high and the negotiator seems to think that I can not move the price down even to generate offers. Price is moving next week and there after- what is the worst that could happen? An offer would be nice!

Comment by Michael Schneider on April 13, 2012 at 6:44am

@Kathleen.  IMHO this is the major flaw in the FHA program, and it's a big one.  Get your best offer, submit it.  If the net exceeds 84% of the ATP value, you can generally get it approved, with a variance, if necessary.  If the net is less that 84%, you can try to dispute the value.  But the FHA dispute process is illogical and out-of-date.

Success depends primarily on price and on your closing costs (adjustments, 2nd lien, conveyance taxes, partial claim, etc.)

When the initial appraisal is much too high, sometimes all you can do is stop wasting your time.

Comment by Kevin - Greenville, SC on April 12, 2012 at 8:12pm

There is no such requirement that they wait prior to ordering another Appraisal.

In an effort to ensure that the most current FMV is used for the PFS, a mortgagee may obtain a new FHA appraisal, even if the property was appraised by an FHA Roster Appraiser within the preceding 120 days.

Monitoring of Appraisals

Mortgagees are reminded that HUD performs monitoring reviews of appraisals and holds mortgagees accountable for the quality of appraisals on properties securing FHA-insured mortgages. As such, HUD may request electronically-formatted appraisals to review and ensure their accuracy. Mortgagees who submit appraisals that do not meet HUD’s requirements are subject to the imposition of sanctions by the HUD Mortgagee Review Board in accordance with 24 CFR Part § 25.9 (ee) and Part § 203.5 (e)(3).

Comment by Bill Black on April 12, 2012 at 8:05pm

Is there any repairs that need to be done? Roof, Furnace, Dry Rot, Gutters? 

Comment by Kathleen Lordbock on April 12, 2012 at 8:01pm

Kevin- I requested one and she said not until May.

Reducing the price and trying to generate an offer seems to be our only hope for now and then ask for a variance if it is below the net, I assume?

Comment by Kevin - Greenville, SC on April 12, 2012 at 7:47pm

Get an updated As-is Appraisal if only one has been completed.

Comment by Kevin - Greenville, SC on April 12, 2012 at 7:46pm

Price reductions.


Members (580)



© 2018   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************