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


 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 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.

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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

Comment by Mary S on September 19, 2017 at 3:03pm

@deb - Can you do a modification of terms for the Listing Agreement to reflect 6% going to the Listing Broker and 0% going to the buyer?

Comment by Deb Orth on September 19, 2017 at 2:11pm

Thanks, Brent.  I'm finding this out.  Buyer repping himself but he's an investor with a a license so it's a little different. They are reducing from 6% to 3%.  In the scheme of things, I would never let it get in the way of my sellers getting approved but it's aggravating since I've done ALL the work for both sides,

Comment by Brett Goldsmith on September 19, 2017 at 1:42pm

@deb who's representing the buyer? What are they trying to reduce commission too? Pretty common for commission to be reduced when a buyer is representing themselves.

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Comment by Deb Orth on September 19, 2017 at 12:10pm

Fifth Third trying to reduce my commission because buyer is an agent.  Buyer has waived his commission.  Who can give me a quick reference in FHA Guidelines that allows me to be paid full commission?


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