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: 578
Latest Activity: on Tuesday

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 [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

FHA short sale with Partial Claim

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

Reverse Mortgage with HELOC

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

61 Days in Marketing, HUD refuses to accept less than 88% net - FSD in 2 days

Started by Robin M. Willis. Last reply by Dean E Eshelman, CPA, CDPE, IRES Dec 12, 2016. 3 Replies

Comment Wall


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

Comment by Jeffrey W Wolff on July 13, 2015 at 10:30am

Client has been issued 3 loan mods, when the short sale was in process.

If the guidelines are based on gross income and do not account for food and other expenses, then we have a major flaw in the FHA Guidelines.  Gross income is 3301.  Gross expenses are 4416.

Comment by Jeffrey W Wolff on July 13, 2015 at 9:42am

Need a little help on a US Bank FHA short sale. I have had the file converted from a short sale to a loan mod 3 times even with opt out letters.

I opened a ticket, the 2nd time with HUD and they called me this morning to say the FHA HAMP guidelines require a loan mod even if the borrower is still underwater $1300/month. (She lives in the property). They said it does not factor into the equation.  How she has to pay for groceries, utilities, etc is not their concern but only a 40% of gross income.  They said the only way around it is a credit score of 579 or lower.  If these are truly the guidelines we have major problems.  I also opened a complaint with US Bank last week and waiting for response.  Anyone have any ideas?


Comment by Tyra General on June 25, 2015 at 2:52pm

Thanks Brett! 

Comment by Brett Goldsmith on June 25, 2015 at 1:52pm


   If they won't accept the payoff per HUD guidelines they will be forcing contributions into play. Regions can be tough. They likely can get budged down from 50% of the UPB though.

[email protected]



Comment by Tyra General on June 25, 2015 at 12:00pm

Anyone every dealt with a short sale that has a 1st (FHA) and a second that is in the recovery department with another lender? Trying to get to the bottom of this. The lender (Regions) does not want to take any less than 50% of the balance. 

Comment by Brigitte Powell on June 22, 2015 at 12:31pm

thank you Kevin for that NOVAD info. :-) I think I should have signed back in in a few months ago! have a second HUD loan dangling behind a first HUD loan and it was like pulling teeth to get the info from BoA (my Sellers are 74 and 82 and had no clue...never even knew there was a second until I added up what didn't make sense lol!! In my case I'm waiting for a variance now. I have never had a second before so this is particularly stressful. (Guess I've been lucky). Five times I got an email that said "We have to net 129,000" and I had no clue. then as I lost it and sent an email to everyone on the list, I found out that they wanted me to put in the exact amount for the second and what was left over for the first (but that had to be a certain number 80% of the appraised value) Ugh! I'm still a novice because I haven't done one in a long while. I have an atty helping with the other one I have with Wells Fargo, last time that will happen.

Comment by Bill Garrett on June 20, 2015 at 11:18am

VALUATION CHALLENGE (FHA) -- I have had mixed success getting FHA to bring a screwy value in line with reality, but I have one that is way out of whack.  Any suggestions or info about current valuation challenge process?   Tips for success, Kevin?   _______ Thanks.

Comment by Kylee Roe on June 17, 2015 at 2:19pm

that is....FHA loan on a flipped property.

Comment by Kylee Roe on June 17, 2015 at 2:19pm

My buyer (in Cali) bought an FHA flip property. There is a 90 day required wait period--the owner must own the home 90 days before the buyer's lender can turn in the loan/open the file. We had a great seller who was willing to wait. We put the home in contract in February. We re-wrote the contract for the 90 day period (Actually 92 days) with the new date and the seller put the home back on the market for two days, and then back to "pending"--so the MLS and the "new" contract date synced up.

Comment by Brenda Houghton on June 17, 2015 at 1:44pm

An investor client will be closing on one of my FHA short sales at the end of the month. He plans to renovate and resell the property. I don't believe there is a required 90 day holding period like Fannie Mae short sales, but are there restrictions on buyers using an FHA mortgage to purchase the rehabbed property? Thanks.


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