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: 581
Latest Activity: Sep 26, 2018

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

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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

Hud/FHA declining to do short sale

Started by Savita Savita. Last reply by Brett Goldsmith Sep 26, 2018. 1 Reply

NOVAD as 2nd lien

Started by Noelle Battle. Last reply by Jason Sanseverino Mar 6, 2018. 3 Replies

Comment Wall


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Comment by Ismael Medina on February 27, 2017 at 12:12pm

Yes I understand, but they never got approved and SS was an option on the Turn Down Letter.

Comment by Brett Goldsmith on February 27, 2017 at 12:09pm

@ismael If a modification is approved and it's simply rejected they typically won't let it into a ss on a FHA insured loan.

Comment by Ismael Medina on February 27, 2017 at 12:05pm

Having a situation with Carrington Loan Servicing where they seem like they do not want to move forward with a Short Sale after turning down a Loan Mod.  We have been told but not in writing that due to the time in delinquency it would be better if they let the house go.  Got an all cash offer on very poor condition home with Special Needs kids occupying it.  We obtained more than 37 days to start the short sale but Carrington does not want to move forward and on top they do not give us a written reason.  Any comments?

Comment by Guerry Clegg on February 21, 2017 at 2:59pm

Got that. So, if a PC is say $2,000 and the seller is eligible for relo assistance, then I guess the seller would receive $1,000. Is that right? Either way, this seller cost would be $3,000 or more, depending on the amount of the PC, so it looks like Jim's scenario would not meet the 88 pct net. 

Comment by Guerry Clegg on February 21, 2017 at 2:38pm

That makes sense.

Comment by Kevin - Greenville, SC on February 21, 2017 at 2:34pm
The Pc is considered a jr. lien so any relocation $$ would go to those first.
Comment by Guerry Clegg on February 21, 2017 at 2:26pm

In Mortgagee Letter 2013-23, the only disqualification for the $3k relo money that I see (assuming the seller has not already relocated) is sellers required to make a cash reserve contribution. Then the wording was updated in ML 2014-15. But maybe an exclusion for partial claim recipients is covered in another mortgagee letter.

Comment by Guerry Clegg on February 21, 2017 at 2:14pm

You are probably right. I have not encountered one with a partial claim and relo assistance. Again, the Sales Contract Review would spell out why it was denied -- if the denial came from HUD. 

Comment by Alexis Adams on February 21, 2017 at 2:07pm

Guerry - I did not think a homeowner qualified for the 3K relocation if there is a HUD partial claim. 

Comment by Guerry Clegg on February 21, 2017 at 2:06pm

I agree with Brett. I would also ask to see the Sales Contract Review (HUD-90051). The seller should be given a copy of the ATP and Sales Contract Review. Looking at the numbers, though, if the seller qualifies for the $3,000 relocation assistance, then it would have to sell for $173,106.38 to pay at 6 pct fee -- and that's without any other seller cost. Either way, I would insist on a copy of the ATP and 90051.


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