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


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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.

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.


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