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

Comment Wall

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Comment by Ro Reed on February 25, 2014 at 1:56am

Thanks, Guerry.  Of course, in the end, (after all the time I invested researching, on hold with HUD)  he has decided not to go the short sale route and sell it conventionally (bringing the money to the table).... with a friend who is an agent.  LOL!

Comment by Guerry Clegg on February 24, 2014 at 4:48pm

Ro, I'm not sure about the variance, but he just has to be past 31 days in default at time of closing. I just closed one with ATP before the 31-day mark but we had to wait a few days into Feb. to close so he would be more than a month in default.

Comment by Guerry Clegg on February 24, 2014 at 4:45pm

Kathy, there's nothing specific to FHA in terms of fees other than the relocation assistance for the seller assuming they qualify. It sounds like you don't have a buyer, so it would be prudent to add in the 1 pct of the loan amount for closing costs in case your eventual buyer uses FHA loan.

Comment by Kevin - Greenville, SC on February 24, 2014 at 4:19pm

It's not FHA/HUD in most cases David.  It's the Lender/Servicer who will not.

Comment by David A. Roebuck on January 29, 2014 at 9:37am

Anyone hear that FHA/HUD will no longer accept electronic signatures on contracts to purchase.  Talk about going backwards in time!!!

Comment by Kathy Yannes on January 29, 2014 at 9:29am

I have not done an FHA short sale yet, can anyone give me a quick synopsis. I am taking over a listing that has an ATP with a list price of 135 and a net required of $113,400. When my title company does the draft HUD, we can actually go down to $122K and still hit the net. So first, are there any fees other than the normal commission, tax stamps, transfer costs that are specific to FHA short sales? And once we get an offer do I just submit to the bank (M&T) and they take care of FHA? I want to make sure I am not missing anything before I put a new price on it.

Comment by Ro Reed on January 22, 2014 at 9:57am

Just spoke with a condo seller and am looking for some clarification on PFS rule changes:  purchased in 2005 with his daughter, she was transferred out-of-state and they couldn't sell so they obtained a land-contract buyer.  He has been paying 6 years but just lost his job. They are not allowed to rent these condos now.  Dad has never been late, would like to short sell, but was told he needed to be occupying.  As I read the rules it seems we won't be able to get him into the PFS program: non-occupant, not delinquent, doesn't have a current hardship other than the fact that he will be hard-pressed to continue making the mortgage payments within the near future.  The way I am reading it the only way he qualifies with a vacant condo is if he goes streamline which means being 90 days behind.  Does anyone think a variance likely?  I appreciate your input.

Comment by Kevin - Greenville, SC on January 21, 2014 at 10:21am

Mo, I have heard about it and it's a poor interpretation of the new rules.  HUD is fine with it though.  so just get a FMV offer ASAP.

Comment by Mo Myers on January 21, 2014 at 9:47am

Please help. Before I got the listing the short sale was rejected due to no offer. The foreclosure process started and the seller came to me. I tried initiating the file in Equator but Wells Fargo kicked it out and made me fax the docs. Now the CAS is telling me they won't initiate the short sale without an offer due to FHA guidelines since the foreclosure process already started. Has anyone heard of this before? I've always gotten the approval to participate with or without an offer and I didn't find any reference to this guideline in the 10-1-13 update but maybe I missed it somewhere.

Comment by joe beauchamp on December 18, 2013 at 12:13pm

Bill, FHA will give you the net due. Like other things, if you are in a fix, you can ask them for a variance. Initially, they almost all tell you it is unacceptable, but that is what variances are for....variances. But, yes, in general, you need to hit that net. (and have utilities on and state that it is being maintained, etc.).

 

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