FHA - HUD Short Sales

Information

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: on Tuesday

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

(469) 674-4451 Fax

customerservice@deval.us

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.

 

Discussion Forum

FHA short sale being mishandled by USBank

Started by Robin Lemmons. Last reply by Kevin - Greenville, SC Oct 23. 1 Reply

Streamlined Shortsale???

Started by cat. Last reply by Chad Gelsinger Oct 20. 1 Reply

FHA Short Sales with Title Concerns

Started by Chad Gelsinger. Last reply by Chad Gelsinger Jul 30. 2 Replies

Comment Wall

Comment

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Comment by Carolyn Triebold, MS on October 21, 2014 at 5:49pm

Yes Kevin, you are correct.  It is an HECM, and HUD is the approving agency. Interestingly, they had our short sale approved when we had 92.65% of appraised value, but when the switch to NOVAD happened we had to go back for approval.  Unfortunately our buyer's FHA appraisal came in low and we resubmitted at 91.8% of appraised value.  How can we get close to 95% of appraised value when commissions are 6% plus fees and now, since we missed our closing date.  The HOA just filed a lien on the house. 

Comment by Kevin - Greenville, SC on October 21, 2014 at 5:21pm

Carolyn,

NOVAD doesn't issue approvals.  that would come from the Servicer.  you may have a HECM and those require an offer of 95% of the appraised value.

Comment by Carolyn Triebold, MS on October 21, 2014 at 4:49pm

HELP!  We are struggling with the change over to NOVAD.  We had a HUD approval and were ready two weeks away from closing.  Buyer's FHA appraisal came in low $5,000 low.  We are now one week past our original closing date.  NOVAD continues to tell us they cannot give us a new approval as our Net is not at least 95% of Appraised value. I was under the impression that our minimum net was 88% of appraised FMV.  Does anyone know what they are talking about regarding 95% net proceed?  We are going round and round.  Thank you!

Comment by Chad Gelsinger on October 17, 2014 at 5:23pm

Come on Kevin...They don't make mistakes like that. :) 

As I said, we were very surprised it was accounted for in the net amount. I would have never guessed. Please let us know how it is supposed to be handled.

Have a great weekend everyone, Chad.

Comment by Kevin - Greenville, SC on October 17, 2014 at 5:15pm

the negotiator and/or closer who worked your file might have incorrectly approved that to your client's benefit. i will check with my contact at HUD and report back.

Comment by Chad Gelsinger on October 17, 2014 at 5:08pm

Bill and Kevin: We just closed one last week where the Seller had to contribute $567.00 and it went towards the minimum net. It was very surprising. Chad

Comment by Bill Garrett on October 17, 2014 at 4:59pm

Kevin:  I think you are probably right.  That's my instinct, as well. If I find out differently I will post it. Thanks for your help.

Comment by Kevin - Greenville, SC on October 17, 2014 at 4:52pm

i'm 99% certain you'll still have to meet the min net.

Comment by Bill Garrett on October 17, 2014 at 4:43pm

IMPACT OF SELLER CONTRIB ON MINIMUM NET TO LENDER

My seller is required under FHA guidelines to make a contribution of $1,000 at settlement.  Will that $1,000 be included as part of the calculation of funds to meet the minimum net to the bank?  Or, must we meet the minimum net PLUS pay the additional $1,000 contribution from the seller? 

Comment by Amy Golden on September 26, 2014 at 2:36pm

Just received the following via email. Thought we should all update our info:

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

 

 

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