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: 560
Latest Activity: Mar 3

FHA Preforeclosure Sale Guidelines


 Click the button to hire a Short Sale Agent Superstar in your area


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


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 Customer.Service@novadconsulting.com

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.


Comment Wall


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Comment by Joy Baker on January 26, 2015 at 11:37am

Is the Matt Martin who is listed as the Director of Loss Mitigation and of HUD's National Servicing Center the same Matt Martin who is CEO of Matt Martin Real Estate Management, the company that has a contract as a HUD M&M asset manager which means they make money disposing of HUD's foreclosure properties.  If so, wouldn't this be a conflict of interest?

Comment by Corinn on January 8, 2015 at 3:12pm

Thank you for your help, as always, Kevin. I am very appreciative.

Comment by Kevin - Greenville, SC on January 8, 2015 at 1:17pm
Comment by Kevin - Greenville, SC on January 8, 2015 at 12:50pm
Comment by Kevin - Greenville, SC on January 8, 2015 at 12:47pm
  1. If the mortgage is due and payable and the borrower (or estate) will not be retaining ownership of the property, the property may be sold for at least the lesser of the unpaid mortgage balance or 95% of appraised value.  


In any circumstance where a mortgagee agrees to the acceptance of less than the full mortgage balance, such sale of the property by the borrower (or the borrower’s estate) should be an arm’s length transaction.  An arm’s length transaction is characterized by the following (1) the absence of a relation between the buyer and seller; (2a selling price and other conditions that would prevail in an open market environment; (3) transaction costs paid by the seller that are considered both reasonable and customary for the market in which the property is located; and (4) the adherence to ethical standards of conduct by all parties involved in the HECM short sale transaction, including the borrowers (or the estate), mortgagees and appraisers..


Comment by Corinn on January 8, 2015 at 12:35pm

Is there somewhere I can look on HUD's website for the allowable fees for a reverse mortgage, Kevin?  

Comment by Kevin - Greenville, SC on January 8, 2015 at 12:26pm

Corinn, The fees allowed for a reverse mortgage ss are not the same as a standard FHA PFS.

Comment by Corinn on January 8, 2015 at 10:57am

Has anyone come across a Reverse Mortgage short sale where the lender states they will not pay a settlement/closing fee?  WF states this is not allowed, per HUD guidelines.  Looking at the Allowable vs. Disallowable costs - paid from Seller's Funds at PFS Settlement worksheet, it is most certainly allowed.  Who do they expect to close the transaction?  They will not supply their own title company either.  Opening a ticket w/HUD, but thought I'd get some feedback from here, since ya'll are so knowledgeable!

Comment by Kevin - Greenville, SC on October 28, 2014 at 2:29pm

And/or HUD.

Comment by Kevin - Greenville, SC on October 28, 2014 at 2:26pm


Time to get an Attorney involved. 


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