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: 566
Latest Activity: Jul 28

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 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

Borrower's Incentive Compensation & NET Question

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

members of LLC required for FHA short sale?

Started by Craig Bartels. Last reply by Craig Bartels Mar 3. 2 Replies

complicated arms length---is this legal or will hud allow this?

Started by Craig Bartels. Last reply by Kevin - Greenville, SC Mar 3. 7 Replies

Comment Wall


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

Comment by Brett Goldsmith on June 25, 2015 at 4:52pm


   If they won't accept the payoff per HUD guidelines they will be forcing contributions into play. Regions can be tough. They likely can get budged down from 50% of the UPB though.




Comment by Tyra General on June 25, 2015 at 3:00pm

Anyone every dealt with a short sale that has a 1st (FHA) and a second that is in the recovery department with another lender? Trying to get to the bottom of this. The lender (Regions) does not want to take any less than 50% of the balance. 

Comment by Brigitte Powell on June 22, 2015 at 3:31pm

thank you Kevin for that NOVAD info. :-) I think I should have signed back in in a few months ago! have a second HUD loan dangling behind a first HUD loan and it was like pulling teeth to get the info from BoA (my Sellers are 74 and 82 and had no clue...never even knew there was a second until I added up what didn't make sense lol!! In my case I'm waiting for a variance now. I have never had a second before so this is particularly stressful. (Guess I've been lucky). Five times I got an email that said "We have to net 129,000" and I had no clue. then as I lost it and sent an email to everyone on the list, I found out that they wanted me to put in the exact amount for the second and what was left over for the first (but that had to be a certain number 80% of the appraised value) Ugh! I'm still a novice because I haven't done one in a long while. I have an atty helping with the other one I have with Wells Fargo, last time that will happen.

Comment by Bill Garrett on June 20, 2015 at 2:18pm

VALUATION CHALLENGE (FHA) -- I have had mixed success getting FHA to bring a screwy value in line with reality, but I have one that is way out of whack.  Any suggestions or info about current valuation challenge process?   Tips for success, Kevin?   _______ Thanks.

Comment by Kylee Roe on June 17, 2015 at 5:19pm

that is....FHA loan on a flipped property.

Comment by Kylee Roe on June 17, 2015 at 5:19pm

My buyer (in Cali) bought an FHA flip property. There is a 90 day required wait period--the owner must own the home 90 days before the buyer's lender can turn in the loan/open the file. We had a great seller who was willing to wait. We put the home in contract in February. We re-wrote the contract for the 90 day period (Actually 92 days) with the new date and the seller put the home back on the market for two days, and then back to "pending"--so the MLS and the "new" contract date synced up.

Comment by Brenda Houghton on June 17, 2015 at 4:44pm

An investor client will be closing on one of my FHA short sales at the end of the month. He plans to renovate and resell the property. I don't believe there is a required 90 day holding period like Fannie Mae short sales, but are there restrictions on buyers using an FHA mortgage to purchase the rehabbed property? Thanks.

Comment by Kevin - Greenville, SC on April 3, 2015 at 11:38pm

you may want to move along if the listing agent has little experience and is doing this on their own.

Comment by Guerry Clegg on April 3, 2015 at 11:35pm

We might do that. My concern is that the agent has done only a few short sales, apparently none were FHA, and is following Citi's lead. I know she's not aware that it can be escalated. She's the second listing agent so I'm not sure she even knows all that has or has not been done.

Comment by Kevin - Greenville, SC on April 3, 2015 at 11:31pm

But as a practical matter the listing agent may/will have to push them to order another. If your buyer is interested make a fair market value offer.


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