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

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Latest Activity: Aug 2

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


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Comment by Luther Fisher on November 21, 2016 at 9:59am

Thanks Dean, 

actually it is a CASH buyer so no worries on a loan, we just wanted to make sure the lender would possibly let us extend it. Their attorney waited until the last minute to do the final HUD for some reason and now they're turning it in late. The ATP was signed off on just last month and we were supposed to close by the 23rd BUT the HUD had to be in to them by today, which it won't be. The buyer can still close whenever, they are ready. 

Comment by Amy Merrill on November 21, 2016 at 9:56am

Can you ask the seller's attorney to draw up the HUD? Explain the situation to them & that if you don't have it in time, and you don't close on time, you'll have to request an extension which will delay the closing. It can take 30 days to obtain the extension.

Comment by Dean E Eshelman, CPA, CDPE, IRES on November 21, 2016 at 9:51am

Luther Fisher -- never dealt with Midland, but email them and let them know to expect it FIRST thing in the morning. Usually, lenders will accommodate. Tell the buyers agent and attorney that it may not close, prepare an amendment to extend in the event you do not get it back approved on time. Usually extend 5 days to allow time to get new docs and new approval. -- Is this an FHA? - ok it is FHA. If so do you have ATP expiration issues? Do the buyers have rate lock extension issues if they do not close on time?

Comment by Luther Fisher on November 21, 2016 at 9:41am

by the way it is an FHA short sale. 

Comment by Luther Fisher on November 21, 2016 at 9:40am

Finally got approval to do short sale and were supposed to close by Nov 23 but the lender (Midland Mtg) required the HUD by today. The closing attorney won't be able to get it in today but will have it 1st thing in the morning (its the buyers attorney and they were told numerous times to have it in by today but they procrastinated). 

Anyways, I haven't been able to reach anyone at Midland yet to see if they'll give an extension or not. Has anyone run into this problem before? 

Comment by Guerry Clegg on September 25, 2016 at 7:48pm

Asking for a colleague: How does the listing agent escalate a BOA decision with HUD? BOA says the closing cost concession is capped at 1 pct. But the 1 pct CC is for buyers who are getting an FHA loan. The Allowable Costs list still applies. I pulled one of my old HUD1's where they approved both.

Comment by Brenda Houghton on September 8, 2016 at 2:29pm

In our region it takes 30 - 45 days to obtain a Certificate of Release, from the date of the initial document submission. Timing is important, because both the short sale approval and the Certificate of Release have expiration dates. You will want both to be valid at the time of closing. 

Comment by London Cox on September 8, 2016 at 2:28pm

I would recommend anticipating 45 days, but have seen them come back quicker on occasion.  You just want to be sure to get them the complete package of documentation the first time around to avoid delays.  

Comment by Short Sale Connection on September 8, 2016 at 2:26pm

Johnna, we have federal tax liens removed fairly often and it's usually 2 to 3 weeks unless they're busier than usual. The paperwork's not bad after the first time especially if you have an appraisal on hand from either the seller's lender or the buyer. You'll need to send the application after you get approval so try to have it ready to go.

Ross Gahagan - Short Sale Connection LLC

Comment by johnna lodge on September 8, 2016 at 2:17pm

Thank you London. This is great news. From the time you submit required and executed documents to IRS how long did it take for you as an average?




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