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: 579
Latest Activity: Nov 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


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

Comment by Brett Goldsmith on February 21, 2017 at 1:49pm

 Is the home in foreclosure? I'd open up a ticket.

Comment by Jim Stewart on February 21, 2017 at 1:37pm

I just had a short sale denied by Wells. Wells told me the FMV was 181500 and asked me to price it according.  Offer was $172000.  Net including full payoff of a HUD partial claim was well within the 88% guideline but Wells said HUD denied the variance because price was not FMV. I've done lots of FHA short sales but never had this happen before. Do these things with partial claims have to go for full price?  I've never received an ATP either, even though Wells submitted the offer.  Not sure what I'm missing here.

Comment by Dean E Eshelman, CPA, CDPE, IRES on December 21, 2016 at 6:08pm

Jim Stewart - you sent request for payoff or title company. I have Title Co request. Took just a day or two.

Comment by Jim Stewart on December 21, 2016 at 10:41am

I sent a request to Novad three weeks ago for a payoff amount for a 2nd lien to HUD for a forbearance. I've received no reply. Any suggestions or anybody know how long I should expect to wait?  Is there a phone number at all?  Haven't had this situation before so any guidance is appreciated.  Thanks!

Comment by Dean E Eshelman, CPA, CDPE, IRES on December 13, 2016 at 11:43am

@ Gladys If you are relying on increased household expenses you will have to provide clear and convincing documentation. -- I would say itemize expenses off of bank statements for last three months and document them. That is what FHA will look at  in addition to credit report items. Maybe show tthe increases from prior years are major items. I have seller use detailed spreadsheet to document expenses.

Comment by Thomas Turner on December 13, 2016 at 11:01am

This is exact wording from variance letter sent....They sent a DENIED response to servicer and noted that property needs to have repairs made and can have short sale /variance re applied for at that time

Justification for requesting HUD approval of this variance from customary Pre-foreclosure Sale proceed. Please allow the PFS to continue with the appraised value being less than 50% of UPB. The current appraised value of the property is $80,000 is less than the Unpaid Principal Balance $280,740.76 by an amount of $200,740.76. We are requesting permission to proceed using the appraised value. We meet required net. Home is not an active foreclosure. Appraisal completed 11/02/2016. Original ATP has never been issued. PFS is expected to close 01/ 10/2017.

I've two variances denied in past week with hud/fha telling servicer its due to property needing repairs? But, every foreclosure in the country needs repairs and I know they close as short sales everyday..... 

Any suggestions???

Comment by Gladys Nunez on December 13, 2016 at 10:17am

@Dean, I gathered as much.  We will see once I appeal.  Thank you!

Comment by Luther Fisher on December 12, 2016 at 3:23pm

Paul, do you happen to know how long it takes to get the payoff? 


Comment by Dean E Eshelman, CPA, CDPE, IRES on December 12, 2016 at 2:10pm

@Gladys Nunez will be a tough go without a hardship.

Comment by Gladys Nunez on December 12, 2016 at 1:40pm

@Dean E Eshelman just rising bills and everyday living mostly.


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