Short Sale Superstars

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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: 570
Latest Activity: on Friday

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 

(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

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

Allowable and Disallowable costs

Started by Guerry Clegg May 19. 0 Replies

Borrower's Incentive Compensation & NET Question

Started by Flor Melgar. Last reply by Ismael Medina Jul 9, 2015. 5 Replies

Comment Wall


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

Comment by Kathleen Lordbock on April 13, 2012 at 5:15pm

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 9:44am

@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  But the FHA dispute process is illogical and out-of-date.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 11:12pm

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 11:05pm

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

Comment by Kathleen Lordbock on April 12, 2012 at 11:01pm

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 10:47pm

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

Comment by Kevin - Greenville, SC on April 12, 2012 at 10:46pm

Price reductions.

Comment by Kathleen Lordbock on April 12, 2012 at 10:45pm

When the ATP is issued a  Fair Market value is given. This negotiator wants the property to remain listed at the Fair Market value even though we are in the 3rd month with no offers and no interest after a showing. According to my CMA we are about $15000 to $20000 over market. Usually I have regular price reductions and still try to stay within the net for that time (although in this case - net is above market for this property) on my FHA-HUD SS.

Do others do MLS price reductions or just leave it sit at the starting price? She emails me every week to check on status and list price.

Comment by Kathleen Lordbock on April 12, 2012 at 10:36pm

Sorry John- I did not see your comment until now and we got this one closed after many months and many issues.

Comment by Kevin - Greenville, SC on April 12, 2012 at 1:57pm

Who ever called me about an FHA PFS issue with Fifth Third yesterday, please call me back (864) 485-9283.


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