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

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Latest Activity: yesterday

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


301 NW 6th Street, Suite 200
Oklahoma City, OK 73102
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

FHA Short Sales with Title Concerns

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

Divorce, Bankruptcy, and FHA - Oh My! What a fiasco!

Started by Debi Braulik. Last reply by Brett Goldsmith Jul 29. 5 Replies

BofA Short Sale after an FHA loan mod

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

Comment Wall


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

Comment by Kevin - Greenville, SC on Friday


I aways dig deep. using their own words against them has helped.

Comment by Kevin - Greenville, SC on Friday
Comment by Frank Biganski on Friday

I've been in short sales 3 years now, but long enough to see one reoccurring theme... the servicers and investors do not care about the home owner - just the bottom line.  And I'm also beginning to see, at least in the southeast Virginia area, that lenders are somehow receiving more conservative appraisals (or BPO's with VA or conventional) and they're not bending on those numbers either.

I had a perfectly clean FHA short sale denied a while ago; variance denied, then the property sat vacant for exactly one year, then it sells for $30,000 less than the offer we had on the table.

I've gotten so jaded and yes, a little cynical, that when it comes to FHA and "smaller" mortgage servicers, I will not negotiate them anymore... I hand them over the a real estate agent/attorney firm to negotiate and close.

I just recently had a client with an in-house Navy Federal Credit Union loan perform a BPO, and the BPO came back about $20,000 too high ($20,000 too high in an expanded 3 mile radius of like-kind properties, but close if the agent used comps from just the community, which they obviously did, and that was bad).  But NFCU would not bend on that valuation one penny, even after I sent them my comps.  They said the borrower would have to pay NFCU $450 to have an independent appraisal performed, which they cannot afford to do.

So... off came the gloves, I instructed my clients to write our local congressman and two weeks later yesterday, my client's received a copy of a letter, where the congressman wrote the CEO of NFCU directly telling him to call my clients.  Hooray ~ one for the agent!

And all the while, NFCU has spent millions upon millions opening new offices here in Virginia, and they have the nerve to turn around and tell my PCS'd veteran client that NFCU must "minimize their losses" and cannot accept a lower offer!?

So in my opinion, don't waste your time trying to dig too deep into any sort of "report" or "guidelines" as to why a mortgage was sold, or why it was denied, as it's the bottom line that will determine the success of a short sale or not.

Now if you'll pardon me, I'm heading out the door to take a new short sale listing today, and another one tomorrow!  LOL!!!


Comment by Kay Van Kampen on Friday

This is why I love Short Sale Superstars!  Now we have an answer.

Comment by Kevin - Greenville, SC on Friday

Under both the PSA and a Participating Servicer Desk Guide, a loan is eligible for the Program if, among other things: ...

(10) the servicer complied with all FHA loss mitigation requirements and exhausted the loss mitigation options. 


Comment by Kevin - Greenville, SC on Friday
Comment by Amy Merrill on Friday

The worst part is, these people were only 6 months delinquent, they had done a modification which required them to pay 3 months mortgage payments up front, then raised their mortgage payment by $200/mo. They did not want to do a deed in lieu, but in the end decided that was better than going thru the foreclosure process. I attended court with them. There was a man there who was rewarded for not completing his paperwork that was a requirement of that court date. He was granted a 4 month extension and a stop on all foreclosure proceedings. My clients went to court, were honest that they were trying to sell their home as a short sale and the judge penalized them by saying the foreclosure process could proceed & yelling at them for not making their payments despite them showing a true hardship & showing how the modification actually made it harder to pay. It's so disheartening.

Comment by Kevin - Greenville, SC on Friday

all of them? nope.

Comment by Kevin - Greenville, SC on Friday
Comment by Kevin - Greenville, SC on Friday

Housing Blight Endures as Hedge Funds Reap Gains on FHA Loans: Mortgages

Sept. 8 (BNA) -- The Federal Housing Administration (FHA) started selling distressed loans in 2012 to help foreclosure-blighted communities, while also reducing losses to its taxpayer-backed insurance fund.

Two years later, the first reports on the loan sales show the program has benefited the insurance fund more than the hard-hit neighborhoods, as hedge funds and private equity-backed investors drive up prices for the loans they buy with few strings attached.



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