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: 557
Latest Activity: Jul 11

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

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National Servicing Center:

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

BofA Short Sale after an FHA loan mod

Started by Jerry Robertson. Last reply by Brett Goldsmith Jul 11. 9 Replies

Jr. Liens to an FHA Mortgage

Started by Terry Reager. Last reply by Brett Goldsmith Jul 9. 4 Replies

Comment Wall


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Comment by Brenda Houghton on May 19, 2014 at 1:36pm

Will HUD allow an agent who is a principle in the transaction (buyer) to receive a commission in a short sale?  Thanks.

Comment by Beth Daubert on April 10, 2014 at 4:42pm

Have you Called FHA/HUD directly? how far behind are the sellers with regards to payments? 

Comment by Scott on April 10, 2014 at 4:13pm

Frank--I've had similar situations on short sales in the past.  I've been told that if the reason the borrower vacated the home is due to the actual financial hardship, then they will grant a variance for that situation.


After just speaking with NSC, they told me that it's "within the servicer's discretion whether to request a variance".  After working many short sales, there is no consistency anywhere.  It's impossible to predict which files variances will be granted and which ones will not. 

Comment by Scott on April 10, 2014 at 4:10pm

I have an FHA short sale and M & T is the servicer.  M & T declined my short sale without informing me of the matter because my client's credit score exceeded 620.  I know what the guideline is, but in the past I've received variances for issues like this. 


I escalated the issue to M & T management and they were of no help.  I escalated the issue to NSC and the escalation specialist was as unprofessional and misinformed as the M & T employees.  I could tell that the specialist didn't understand their own FHA guidelines.  DOES ANYONE KNOW ANOTHER AVENUE TO HOLD THESE PEOPLE ACCOUNTABLE????

Comment by Flor Melgar on March 27, 2014 at 7:31am

Ask the negotiator to request a variance for the closing costs.  I had one that just closed yesterday where I had to be very insistent and finally got the negotiator to request the variance for 4% and we got it.  As long as the NET to HUD is they normally approve  

Comment by Katie Johnson on March 27, 2014 at 7:26am
i've received an offer on a HUD ss that is calling for 6% toward closing costs because buyer has no cash and is using 100% usda rehab loan. Property is in tough shape, and i've got several low cash offers from investors. what do you think chances are HUD will go higher than 1% toward cc? Thanks much
Comment by Frank Biganski on March 12, 2014 at 10:15am

I was just contacted by a borrower (Wells Fargo FHA) who hasn't lived in the home since 2008. She was active military at the time she received PCS orders, now civil servant with orders to transfer again.

She has tenants in the home, but borrower now is in pre-foreclosure and looking to short sale due to another job transfer and loss of income.

I've read here and elsewhere that FHA short sale will be denied because there are tenants in home but with this borrower's history, what's anyone's take of whether this will get approved or not.

I sent in Borrower Verification form thru Equator today, but just curious what anyone thinks and whether this will be worth pursuing a Variance if borrower is denied.



Comment by Guerry Clegg on March 11, 2014 at 5:20pm

Thanks Kevin.

Comment by Kevin - Greenville, SC on March 11, 2014 at 5:16pm

there is a catch though Guerry.  Call me. 864-485-9283.

Comment by Kevin - Greenville, SC on March 11, 2014 at 5:15pm

go figure. incorrect info from BOA?? say it ain't so.. FHA has no so new policy.


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