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


 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

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 Gladys Nunez on December 12, 2016 at 10:24am

We were denied participation in a short sale by wells fargo because of income and we are current on the mortgage demonstrating that we ARE able to make the payments. Processor said I can appeal and resubmit the financial worksheet with whatever expenses we might've "forgotten.  But the financial worksheet I submitted already showed us $400 in the RED. How much more are we supposed to show we are in the red and is the real issue that we are CURRENT?  If we stop paying, but still show same income, won't this still be an issue? We don't know how to proceed from this point. Any advice?

Comment by Thomas Turner on December 6, 2016 at 4:26pm

I have (2) FHA/HUD short sales denied this week for because variance was denied due to repairs needed??? Anyone have any suggestions...

Comment by Chad Gelsinger on November 30, 2016 at 10:18am

Jim, simply contact Novad (see contact info in guidelines above) to order a payoff. You will need a generic 3rd Party Authorization. Whatever the amount is, it will need to be paid in full. WF will apply for a variance with HUD to allow this to happen. Work the short sale as a normal FHA file. Chad 

Comment by Jason Sanseverino on November 30, 2016 at 10:17am

Sounds like this may be a Partial Claim Loan - these are paid in full with short sales. Request a payoff from [email protected] / add to HUD-1 as you normally would - 

Comment by Jim Stewart on November 30, 2016 at 10:14am

working an FHA short sale with Wells. Apparently the seller did a forebearance in 2014 and signed a 2nd deed of trust for around $16k. Wells tells me I have to deal with HUD directly on this. I've not come across this situation before. Any advice?? Just work it as a regular 2nd lien??

Comment by Dean E Eshelman, CPA, CDPE, IRES on November 25, 2016 at 3:29pm
Luther. I would prepare a sellers net sheet, dhowing bank loss snd there FHA incentive that is being paid to them. Then talk about incentive decrease as days on ATP accumulate.
Comment by Luther Fisher on November 25, 2016 at 2:02pm

I've got another fha short sale going and we received an offer but the seller is refusing to sign, saying the house is 'worth more'. The offer is like $5k off of the suggested list price so the lender would likely accept it. They are aware that is a short sale so acceptance is really up to the lender, but they don't seem to care.

Also, now my client is saying they'll need 2 weeks to move AFTER signing the closing papers, which is unheard of and of course potential buyers are walking. Has anyone had anything like this happen? 

Comment by Luther Fisher on November 21, 2016 at 10:58am

the attorney is out of town today so that's why they can't do it, they were supposed to have it in by Friday last week. He did say he would have it in first thing in the morning so we're just crossing our fingers that it can still get done this week. I've emailed and called my contact at the lender to let them know but haven't heard back from them yet. 

Comment by Amy Merrill on November 21, 2016 at 10:18am
I'd push them to get it done today. Explain the delay to them, sounds like they don't have a lot of experience with short sales. I would also ask the buyers and the other agent to push the attorney as well.
Comment by Luther Fisher on November 21, 2016 at 10:04am

Seller doesn't have an attorney. In NC the buyer gets to pick the closing attorney. 30 days? ugh. It is extremely frustrating because we let them know it HAD to be in today. Oh well I guess that'll have to be it then. 


Members (578)



© 2017   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

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