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

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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

customerservice@novadconsulting.com

301 NW 6th Street, Suite 200
Oklahoma City, OK 73102
National Servicing Center:

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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

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Comment by Dean E Eshelman, CPA, CDPE, IRES on November 21, 2016 at 12:51pm

Luther Fisher -- never dealt with Midland, but email them and let them know to expect it FIRST thing in the morning. Usually, lenders will accommodate. Tell the buyers agent and attorney that it may not close, prepare an amendment to extend in the event you do not get it back approved on time. Usually extend 5 days to allow time to get new docs and new approval. -- Is this an FHA? - ok it is FHA. If so do you have ATP expiration issues? Do the buyers have rate lock extension issues if they do not close on time?

Comment by Luther Fisher on November 21, 2016 at 12:41pm

by the way it is an FHA short sale. 

Comment by Luther Fisher on November 21, 2016 at 12:40pm

Finally got approval to do short sale and were supposed to close by Nov 23 but the lender (Midland Mtg) required the HUD by today. The closing attorney won't be able to get it in today but will have it 1st thing in the morning (its the buyers attorney and they were told numerous times to have it in by today but they procrastinated). 

Anyways, I haven't been able to reach anyone at Midland yet to see if they'll give an extension or not. Has anyone run into this problem before? 

Comment by Guerry Clegg on September 25, 2016 at 10:48pm

Asking for a colleague: How does the listing agent escalate a BOA decision with HUD? BOA says the closing cost concession is capped at 1 pct. But the 1 pct CC is for buyers who are getting an FHA loan. The Allowable Costs list still applies. I pulled one of my old HUD1's where they approved both.

Comment by Brenda Houghton on September 8, 2016 at 5:29pm

In our region it takes 30 - 45 days to obtain a Certificate of Release, from the date of the initial document submission. Timing is important, because both the short sale approval and the Certificate of Release have expiration dates. You will want both to be valid at the time of closing. 

Comment by London Cox on September 8, 2016 at 5:28pm

I would recommend anticipating 45 days, but have seen them come back quicker on occasion.  You just want to be sure to get them the complete package of documentation the first time around to avoid delays.  

Comment by Short Sale Connection on September 8, 2016 at 5:26pm

Johnna, we have federal tax liens removed fairly often and it's usually 2 to 3 weeks unless they're busier than usual. The paperwork's not bad after the first time especially if you have an appraisal on hand from either the seller's lender or the buyer. You'll need to send the application after you get approval so try to have it ready to go.

Ross Gahagan - Short Sale Connection LLC

Comment by johnna lodge on September 8, 2016 at 5:17pm

Thank you London. This is great news. From the time you submit required and executed documents to IRS how long did it take for you as an average?

TY

Johnna

Comment by London Cox on September 8, 2016 at 5:11pm

Johanna - 

Yes, I've run into this issue with the IRS on short sales on a number of occasions and have found them to be pretty cooperative in removing those liens.  As would be expected with dealings with the IRS, there is certainly some paperwork involved, as well as some turnaround time, but so long as it's clear that the property is being sold at a loss and the taxpayer isn't collecting any monies at close, they will usually remove the lien from title.

Here's a link to the IRS page detailing the process and with links to the internal publication that details how to go about it:

https://www.irs.gov/uac/irs-speeds-lien-relief-for-homeowners-tryin...

Hope this helps and good luck getting your deal approved and closed.


London

Comment by johnna lodge on September 8, 2016 at 4:48pm

Has anyone been able to move an IRS Tax Lien from the property to the individual? My seller that I am working with on a short sale has over a $20K tax lien that would make the sale of the property a little over market value. The HUD representative suggested this. Has anyone attempted or had success with the IRS removing the lien from the property and attaching to seller? Thank you. Johnna

 

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