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: 581
Latest Activity: Sep 28, 2020

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 [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 Short Sale Superstars LLC Nov 22, 2019. 5 Replies

Hud/FHA declining to do short sale

Started by Savita Savita. Last reply by Short Sale Superstars LLC Sep 26, 2018. 1 Reply

Comment Wall


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

Comment by Grant Weaver on May 5, 2020 at 11:33am

Thank you Brett Goldsmith!

Comment by Short Sale Superstars LLC on May 5, 2020 at 10:23am

@grant yes, they still have the PFS program.

Comment by Grant Weaver on May 5, 2020 at 9:58am

Does FHA-HUD still have the Pre-Foreclosure Sale (PFS) Program?

Comment by Short Sale Superstars LLC on April 26, 2019 at 4:51am

@tracy you need to open up a case with NOVAD and get a HUD counselor assigned to try to push the variance through if challenges arise.

[email protected]



Comment by Tracy Hatchell on April 25, 2019 at 10:53am

I have been doing short sales since prior to the market falling in 2007. I am finding that it is getting harder and harder these days as there are few short sales now. I have an issue with Chase Bank saying they submitted a variance to HUD since my seller had rented the house while on military deployment for a couple of years then got divorced and he was forced to do a 100% disabled medical discharge and now divorced with the decree ordering sale of home. They both live out of state. We have exceed the required net. They submitted the variance to HUD on 04/12/2019. Today is the 25th. I called to escalate it with HUD. HUD now has this crazy call center. Anyone have a direct number to HUD loss mitigation? 

Comment by Short Sale Superstars LLC on March 7, 2019 at 5:41am

@ Guerry, call Novad with FHA  Case # and open up a ticket to get a HUD Counselor involved if you are having problem with M&T's servicing of the FHA loan.

[email protected]


Comment by Guerry Clegg on March 7, 2019 at 3:57am

How do I escalate an issue with NOVAD and with M&T Bank? Two issues, actually. Lack of communication with my negotiator and an unrealistic valuation due to property condition.

Background: I have a short sale with M&T. We have an ATP, even though we didn't receive it from M&T for nearly 10 days after it was issued. Seller signed and we returned it 10 days ago. Negotiator emailed yesterday stating that the file would be closed if we did not return the signed ATP. I replied -- with the signed ATP attached -- that I sent it 10 days ago but here it is again. She replied that I could send it directly to her. I replied that it was attached to the email she was replying to, so please confirm receipt. I had also asked in that email and the previous one about the appraisal for valuation because it came in high for the property condition. No response to that.

Comment by Short Sale Superstars LLC on September 13, 2018 at 4:54am

The only time one is able to go below 84% NET from what I've ever seen is when there is a partial claim that is required to get paid.

Comment by Short Sale Superstars LLC on September 13, 2018 at 4:52am

Gurerry, let me rephrase that for you. You can get to a lower tier prior to the requested time period per the ATP by having a variance submitted. Here's an example: I've gotten 84% NET approved within 30 days of borrower being in the PFS program.

Comment by Guerry Clegg on September 13, 2018 at 2:49am

I'm confused. Why would you need a variance for 86 percent within the 30-60 day period when that's the required net for that period?


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