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 Brett Goldsmith on June 20, 2016 at 7:50am

@frank I think it's worth to try, just because they own another asset with potential equity does not necessarily mean they won't qualify in my opinion. Do they owner the land free and clear?

Comment by Frank Biganski on June 20, 2016 at 5:00am

Hey folks, I have a potential FHA short sale where the borrower(s) would qualify for the preforeclosure sale. They are upside down in their mortgage, the wife cannot get work for years now, and income has been reduced to the point where even their utilities have been getting cut off.

However, the borrower also owns a parcel of land that is zoned light industrial and is tax assessed at $175,000. In your experience, do you think they "might" qualify for the FHA preforeclosure sale, or would they be required to sell that land, or what?



Comment by Jeffrey W Wolff on June 2, 2016 at 1:52pm

Does anyone from Illinois heard the HUD has reduced attorney fees across the board to $250?  It used to be a max of $1500.  I have my authorization getting verified and will talk to them directly, but M&T Bank just reduced attorney fees to $250 and that will not fly in Illinois.  Glad I am not an attorney.

I will post once I get verification if nobody responds.  Thanks  Jeff

Comment by Brett Goldsmith on May 17, 2016 at 5:12pm

@jim They are still requested to be paid in full by HUD through a variance.

[email protected]



Comment by Chad Gelsinger on May 17, 2016 at 5:11pm

Jim, the HUD Partial Claim Loans are typically not an issue. Just send a 3rd Party Authorization, with FHA Case number and order a payoff. The Partial Claim will be paid in full from the sale proceeds. For the most part, it is a fairly simple/straight forward transaction. Chad.

Comment by Jim Schneider on May 17, 2016 at 5:05pm

Have partial claims remained as the same problem they were before? I looked through past comments but the most recent ones were from 2012.

Comment by Bill Garrett on April 15, 2016 at 3:01pm


After a long battle with Wells Fargo (and FHA/HUD) to get them to revisit their flawed appraisal's valuation, they did finally order a new appraisal.  They did, however, order it with the same guy who did the earlier appraisal.  ("Mr. Appraiser, was your appraisal wrong then or now.")_______ I've seen this happen before with these FHA files.  Is it standard policy or mandated by the applicable regs?  Do I have any shot at getting the lender or HUD to reverse course and use a different appraiser?  ______ Thanks. 

Comment by Stephanie Summers on April 13, 2016 at 8:54pm

I would definitely call your state reps and media. I contacted our senators after a similar situation and Hatch got the ball rolling with the lender. Ended up getting our approval and closed it within two weeks. Pull out the stops and let them know you're coming at them from all angles. 

Comment by Arlene Garcia Hanner on April 13, 2016 at 3:22pm

I also agree with Kevin.  Keep trying until the property no longer belongs to the homeowner. 

I had a short sale deal that the seller was about 4 years behind in payments on their FHA loan.  Initially, the file was denied.  But I kept trying and got an ATP.  Then the loan was sold in the middle of the transaction!!!  I had to start all over again but eventually did sell the house.  Twitter does keep things moving.

Comment by Scott on April 13, 2016 at 1:51pm

I agree with you Kevin.  I've done so many short sales I now expect idiocy from the lenders.  When something like this happens, it doesn't surprise me on bit.  I never even used Twitter prior to me having a short sale go haywire.  It actually worked in that case and then every time since then.  Now, it's part of my arsenal.


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