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


 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

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 Bill Garrett on June 7, 2017 at 8:16am

ANY CURRENT FHA//HUD CONTACT?   Does anyone know if Darrell Powell is still available to pull a file a variance request from the FHA swamp? If not, is there anyone currently doing what he  once did for us?  Thanks.  

Comment by Warnie Shaw on April 13, 2017 at 11:20am

I'm having a problem with Loancare , We have an FHA appraisal that was done Jan 2017 for 189,000 per FHA guidelines they should net 158,760 . Our offer is for 177,000 @ 6%. FHA will net more than 158,760 but the servicer continues to deny the offer as being to low . HELP !!!

Comment by Alex on March 22, 2017 at 10:20pm

I am negotiating a FHA short sale where the servicer (Kentucky Housing Corporation) owns the second mortgage. They are refusing to order the appraisal because they said they would get in trouble by FHA for ordering it when they know it is worth more (there has not been an interior or even drive by appraisal). They are getting this info from previous sale in 2007 (height of market before crash) when it sold for $105k. We have a contract on it for $67,000, and have sent them supporting comps and contractor bids to get property back in selling shape. I know it would easily appraise if they would just order it. The servicer only has 1 person in short sale department, so I don't know how to escalate or who else to contact. Should I contact FHA directly? Has anyone else dealt with something like this before? because it is a definite first for me. I think the servicer thinks they are going to get money back if it goes to auction, which is not the case.

Comment by Jim Stewart on March 21, 2017 at 12:49pm

FHA short sale with Wells. ATP for price of $181,500 issued on 3/1/17 and good through 6/29/17, fully executed by seller and confirmed in WFC hands. Now WFC says appraisal is no longer valid and new ATP is needed with new appraisal of $205,000. Seems to me that the old appraisal is WFC's problem.  Am I wrong?  Can they unilaterally decide an ATP isn't valid anymore???

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.

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