Short Sale Superstars

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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: 567
Latest Activity: on Wednesday

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

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

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

Allowable and Disallowable costs

Started by Guerry Clegg May 19. 0 Replies

Borrower's Incentive Compensation & NET Question

Started by Flor Melgar. Last reply by Ismael Medina Jul 9, 2015. 5 Replies

Comment Wall


You need to be a member of FHA - HUD Short Sales to add comments!

Comment by Brett Goldsmith on April 13, 2016 at 4:30pm

We had ATP issued and spoke to the HUD director and escalation contact. It did not get us anywhere. Let me know if someone gets one of these "excessive delinquency denials" overturned !

Comment by Dean E Eshelman, CPA, CDPE, IRES on April 13, 2016 at 4:22pm

@jason I am like Kevin, I fight to the bitter end. If an ATP was issued someone can later say it was in error and to me that is just an excuse to not approve. Escalate, Escalate, twitter, FaceBook, CFPB everyone.

Comment by Kevin - Greenville, SC on April 13, 2016 at 4:16pm

So their current stance is so now they shoot themselves in their foot  because of the previous actions of the homeowner?

Comment by Kevin - Greenville, SC on April 13, 2016 at 4:14pm

A short sale is never over until the property is no longer in the seller's name. FHA has only two choices and they are foreclosure or short sale. the foreclosure historically nets them LESS than a short sale (this is taxpayer $). fight for it with everyone you can contact. the press, your state reps., etc., etc., etc.

Comment by Jason Sanseverino on April 13, 2016 at 4:08pm

Hi Dean  - thanks for your response. I was surprised that the ATP was issued - and I knew it was issued in error. Based on what I was told by HUD and Brett's response below - I believe this short sale is over.

Comment by Dean E Eshelman, CPA, CDPE, IRES on April 13, 2016 at 4:04pm

@jason. Just my opinion, but seems to me if the ATP was issued, that is an obligation to negotiate the short sale. Granted 10 years is a way long time and the reason why the homeower did not step forward sooner might be included in a statement. I certainly see why an extension of appraisal might be denied, but like I said they issued the ATP.

Comment by Jason Sanseverino on April 13, 2016 at 2:48pm

Thanks Brett - Most of my FHA files are only 3-24 months past due. This is the 1st time I have encountered this.

I appreciate your response!

Comment by Brett Goldsmith on April 13, 2016 at 2:45pm

@jason this is happening quite often now. I've seen it happen 3 times within the last 2 months. HUD is closing out short sales on extremely delinquent accounts. I believe it is 3years+


Comment by Jason Sanseverino on April 13, 2016 at 2:39pm

I have a Wells Fargo FHA short sale where the loan is about 6 years past due. 
Our short sale package was processed with Wells Fargo - an Appraisal was completed - an ATP was issued (which was a surprise to me due to the delinquency) and we have an offer that's $20k above the ATP value.

Wells Fargo told me that HUD denied a variance to extend the appraisal (not sure why they needed an extension) and they shut down the short sale file - even though the ATP wasn't expired.   

I escalated this file with Novad and HUD. HUD notified me that they refuse to proceed with a short sale on this home due to the extreme delinquency on the loan.

In 10 years of processing short sale - I have never seen this occur.

Has anyone encountered this? Any suggestions?


Comment by Brenda Houghton on September 15, 2015 at 3:10pm

FHA PFS Allowable Fees

HOA fees are allowable fees to be paid from seller's proceeds per HUD Preforeclosure Sale rules. The sellers would also be required to use their $3000 incentive to pay a part of the HOA fees. The remaining amount HUD will pay is completely dependent upon the minimum net required in the Approval to Participate letter, as Brett said. The key to making this deal work is to negotiate with the HOA to get them to reduce the amount owed.


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