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: Jul 25

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


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 Jason Sanseverino Mar 6. 3 Replies

FHA short sale with Partial Claim

Started by Mike Rosania. Last reply by Jim Stewart Feb 21, 2017. 10 Replies

Reverse Mortgage with HELOC

Started by Lisa Jalufka. Last reply by Brett Goldsmith Jan 31, 2017. 1 Reply

Comment Wall


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

Comment by Mary S on September 19, 2017 at 3:03pm

@deb - Can you do a modification of terms for the Listing Agreement to reflect 6% going to the Listing Broker and 0% going to the buyer?

Comment by Deb Orth on September 19, 2017 at 2:11pm

Thanks, Brent.  I'm finding this out.  Buyer repping himself but he's an investor with a a license so it's a little different. They are reducing from 6% to 3%.  In the scheme of things, I would never let it get in the way of my sellers getting approved but it's aggravating since I've done ALL the work for both sides,

Comment by Brett Goldsmith on September 19, 2017 at 1:42pm

@deb who's representing the buyer? What are they trying to reduce commission too? Pretty common for commission to be reduced when a buyer is representing themselves.

[email protected]



Comment by Deb Orth on September 19, 2017 at 12:10pm

Fifth Third trying to reduce my commission because buyer is an agent.  Buyer has waived his commission.  Who can give me a quick reference in FHA Guidelines that allows me to be paid full commission?

Comment by Guerry Clegg on August 30, 2017 at 11:53am

Scott, is there a mortgagee letter that states a credit score threshold for non-Streamline? I have never seen one. I had 2 traditional short sales that were denied because the sellers abandoned the property, so I tried to get them approved for a Streamline. Both were denied because they had co-signers (parents) with 700-plus scores. But they would have been eligible for the traditional HUD short sale if they had not abandoned the houses.

Comment by Scott on August 30, 2017 at 11:24am

We have clients declined all the time for the credit score being above the threshold.  For whatever reason, HUD doesn't grant variances for that particular requirement.  It's unbelievably frustrating.  The servicers adhere to that guideline and HUD won't do anything to help.  I can't tell you how many times we've dealt with this problem.

Comment by Corinn on August 30, 2017 at 11:00am

I'm with you on that, Guerry.  I think they're confusing it with a different guideline.  Just thought I would check with the gurus on this site, in case I missed an update on a guideline or something.  I'll get FHA involved on it, which is what I was planning on doing anyway.

Thanks for taking the time out to respond!

Comment by Guerry Clegg on August 30, 2017 at 10:56am

Corinn, I think the Lender is getting it confused with Streamline. I don't know of any mortgagee letter that states that, and my personal experience is I've had FHA sellers  maintain good credit and stay current until missing their last payment on purpose due to the inane rule that they must be 30 days delinquent to close. I would escalate.

Comment by Corinn on August 30, 2017 at 10:34am

Can anyone verify this...

If seller's credit score is higher than 580, they are not eligible for a short sale.  Lender states that, since their credit score is higher than that, they are not eligible for the s/s, and would have to sell the property for what is owed.  I've never heard of this before.  

I know about the streamlined review, because of credit score, but this is new to me.  Has anyone else encountered this?

I appreciate your feedback!

Comment by Gina Smith on August 2, 2017 at 12:06pm

is mortgagee, lender, responsible for asset preservation on a vacant house in a short sale ?


Members (580)



© 2018   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************