FHA - HUD Short Sales

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FHA - HUD Short Sales

HUD rules for FHA short sales, tips, experiences, etc.

Fax LOA:  918-236-3274

PH 877 622-8525

Members: 581
Latest Activity: Sep 28, 2020

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 [email protected]

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

NOVAD as 2nd lien

Started by Noelle Battle. Last reply by Brett Goldsmith Nov 22, 2019. 5 Replies

Hud/FHA declining to do short sale

Started by Savita Savita. Last reply by Brett Goldsmith Sep 26, 2018. 1 Reply

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Comment by Smitty on September 24, 2012 at 1:22am

My clients want to short sale their home.  when they spoke to HUD they were told they were eligible for loan mod.  They don't want the loan mod.  I it possible just to deny the mod and move towards the short sale? Thanks gang.

Comment by John Edelman on September 20, 2012 at 3:01pm

Lisa,

 

Just out of curiosity, who is  your assigned negotiator?

Comment by Lisa Mollman on September 20, 2012 at 2:56pm

Thanks John!  I went back to the negotiator & supervisor requesting a copy of the appraisal again and this time I included the remarks from PFS Procedures about providing a copy to the sales agent.  Thanks again for your help!  I will reach out to you if I run into problems.

Comment by John Edelman on September 20, 2012 at 7:02am

Lisa,

 

First of all- they have to provide you a copy of the appraisal if you ask (Part of the FHA guidelines).  I work with Wells quite a bit on FHA - so maybe I can help.

 

Also, if they will not order another appraisal for you - you may need to contact HUD for help.

Comment by Lisa Mollman on September 20, 2012 at 6:50am

Need Help with Wells Fargo FHA SS!! Listed property on 4/11 and appraisal was completed on 4/23, finally received ATP on 7/02 with a value of $75,000. This value represents other homes in area that are complete remodels, in good condition. The property I’m working on is uninhabitable and will require a cash buyer...due to foundation settlement, rotten wood, peeling paint, leaking roof, plus an animal urine odor that’s so bad, it literally makes you sick upon entering.  First offer for $37,000 was denied, recently received a second offer for $58,000 but it was denied also. I understand that the 120 marketing period doesn’t begin until the ATP is issued, which I’ve been disputing the value since then because the appraisal was almost 120 days old.  Requested a new apprasial by submitting an appraisal dispute, with detailed information, comps & pictures but negotiator rejected my request because I used the same properties that were on the initial appraisal. How am I supposed to know what properties were used on the appraisal, he won’t give me any details.  This has always worked in the past so I don’t know where to go from here….do I escalate with WF or do I go directly to HUD?   Any information would be greatly appreciated!! 

Comment by Kelly W. Maynard on September 19, 2012 at 4:54pm

To comment on David's comment:

"Isn't it the rule of thumb on an FHA Short Sale that the purchase price be 88% of the appraised value??  So if the appraisal came in at $100,000 the purchase price needs to be $88,000 with the bank's net obviously lower.  I have a negotiator telling me that the bank's net needs to be 88% of the appraised value, which means the purchase price is darn close to the appraised value.  Am I correct or is the negotiator?'

When the bank says they need to net 88%, that is exactly what they mean.  If the fair market value is said to be $100,000, whether that is based on comparables that are all distressed properties or if the majority are traditional sales, it does not matter.  I am assuming a BPO or appraisal was done by the bank.  So after closing cost, commission, and any other fees are deducted from the seller side, the bank needs to net $88,000.

Comment by David A. Roebuck on September 19, 2012 at 3:29pm

I'll keep you updated as we progress.

Comment by Kevin - Greenville, SC on September 19, 2012 at 3:22pm

An ATP will have to be issued prior and/or simultaneously to the Short Sale Approval.

Comment by David A. Roebuck on September 19, 2012 at 3:21pm

Yea, a little strange -- and to think we are just "days" away from approval of the Short Sale!!!!   Hmmmmmm

Comment by Kevin - Greenville, SC on September 19, 2012 at 3:05pm

You are not in as what FHA defines as a 'marketing' period if you dont' have the Approval to Participate yet.

 

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