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: Apr 26

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

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


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

Comment by Brett Goldsmith on July 25, 2018 at 8:13am

@AL typically short sales are sold as-is and repair costs will not be approved. Repairs should be baked into the purchase price.

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Comment by Al on July 23, 2018 at 8:38pm

Is repair allowance or repair assistance allowed a fha short sale? 

Comment by Brett Goldsmith on July 13, 2018 at 8:27am

@AL You should confirm but I believe the 15 day marketing period may not be required for the PFS program if the property is in foreclosure. Typically an offer is needed to get an appraisal ordered if a FHA borrower is in foreclosure.

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Comment by Al on July 12, 2018 at 2:02pm

Started Working on a FHA short sale with a foreclosure sale date scheduled in well over a month. Bank has agreed to do a short sale and 1st legal has been filed. We have submitted an offer and the bank has order an appraisal. My understanding is the property has to be listed on the MLS for at least 15 days after the ATP has been issued before the accepts any offer. Would it be any different if 1st legal is filed? Fellow members your input would be helpful!

Comment by Brett Goldsmith on November 2, 2017 at 10:09am

@kimberly Yes, I've experienced before. They won't do a short sale if they advance taxes and aren't reimbursed.

[email protected]rtsalenow.com



Comment by Kimberly S. Ruley on November 1, 2017 at 11:17am

I was just informed by NOVAD that the back taxes that were just paid by them will need to be added to the sales price for approval. In other words, the buyer has to reimburse HUD for the taxes paid above the 95% of value. Anyone ever dealt with this? I think this is going to kill the deal we have.

Comment by Kimberly S. Ruley on October 6, 2017 at 4:56pm

Brett, I'm sending you an email and will call you tomorrow or Monday.

Comment by Brett Goldsmith on October 5, 2017 at 4:44pm

You can escalate the servicer or you can open up a ticket with NOVAD to get a HUD counselor assigned.

Feel free to reach out if you want support.

[email protected]



Comment by Kimberly S. Ruley on October 5, 2017 at 9:26am

What's the process to escalate a file? I've been dealing with this one for over a year. First appraisal was lower than offer but we didn't get approval in time. Second appraisal was higher than offer and buyer wasn't willing to go higher. Time ran out and am now waiting for 3rd appraisal. It's been 3mos since I sent them updated HUD and updated offer and nothing. File did change hands but second point of contact is unresponsive. I'm trying to figure out how to get someone else to see this file.

Comment by Deb Orth on September 19, 2017 at 3:15pm

Doubtful, Mary but I can always check on it.  At this point, I don't want to do anything to hold anything up for my sellers


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