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:

******

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 Chad Gelsinger on October 17, 2014 at 10:08am

Bill and Kevin: We just closed one last week where the Seller had to contribute $567.00 and it went towards the minimum net. It was very surprising. Chad

Comment by Bill Garrett on October 17, 2014 at 9:59am

Kevin:  I think you are probably right.  That's my instinct, as well. If I find out differently I will post it. Thanks for your help.

Comment by Kevin - Greenville, SC on October 17, 2014 at 9:52am

i'm 99% certain you'll still have to meet the min net.

Comment by Bill Garrett on October 17, 2014 at 9:43am

IMPACT OF SELLER CONTRIB ON MINIMUM NET TO LENDER

My seller is required under FHA guidelines to make a contribution of $1,000 at settlement.  Will that $1,000 be included as part of the calculation of funds to meet the minimum net to the bank?  Or, must we meet the minimum net PLUS pay the additional $1,000 contribution from the seller? 

Comment by Amy Golden on September 26, 2014 at 7:36am

Just received the following via email. Thought we should all update our info:

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]

 

Comment by Chad Gelsinger on September 24, 2014 at 8:22am

Sorry for the confusion on my part about which state you are in. In PA, we are both recourse and non-recourse depending on the type of loan/position/purpose. Purchase money (1st lien only) is generally the only loan protected from recourse. If the loan is a recourse loan, the lender can file the deficiency up to 6 months after the sheriff sale.

I am not aware of a way for a Lender to pursue a deficiency in a non-recourse state.  Again, I would suggest the seller contacts an attorney in your state. Chad

Comment by Bill Garrett on September 24, 2014 at 6:28am

Thanks for the quick response.  I am, however, not in a non-recourse state.  I know a bank may pursue a deficiency claim after a sheriff sale (involving a conventional mortgage). I just don't know if there is something in the FHA  rules that would bar the post-sheriff sale deficiency claim. 

Comment by Chad Gelsinger on September 24, 2014 at 6:25am

Bill, If you are in a non-recourse state, they should not be allowed to pursue the deficiency. The laws do vary for each situation. You should have your sellers contact a local attorney.

In most cases, the Lender would issue a 1099-C. Chad

Comment by Bill Garrett on September 24, 2014 at 6:22am

POST-SHERIFF SALE RECOVERY BY LENDER (FHA LOAN)

I am not in a non-recourse state.  After a sheriff sale may the lender pursue a claim against the borrower for the deficiency?  Thanks.

Comment by Neil L. on September 22, 2014 at 1:02pm
 

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