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: Mar 7

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

Hud/FHA declining to do short sale

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

NOVAD as 2nd lien

Started by Noelle Battle. Last reply by Jason Sanseverino Mar 6, 2018. 3 Replies

Comment Wall


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

Comment by Wendy Rulnick on December 27, 2009 at 8:40am
Dana - I don't believe they "thought out" their language very much.
Comment by DanaVoelzke on December 26, 2009 at 12:45pm
For those looking to purchase with an FHA loan AFTER completing a short sale see

I just watched a video announcing some new HUD guidelines with respect to borrowers looking to obtain FHA loans after having completed a short sale. It makes a distinction between borrowers who were delinquent at the time of the short sale those that weren't.

It also says borrowers who took advantage of the short sale simply to take advantage of market conditions or who moved locally are not eligible for an FHA loan for 3 years. I guess my question is how could someone be approved for a short sale "to take advantage of market conditions"? I thought you needed to demonstrate a hardship to get approved for a short sale. I have never seen a decline in equity cited as a hardship, but maybe I'm wrong about that.

I guess HUD is attempting to prevent people from abusing the system. Do you think it will help?
Comment by Wendy Rulnick on November 23, 2009 at 1:12pm
Thanks, Stephanie! Our market is really dropping faster than that, though :(
Comment by Stephanie Lim on November 23, 2009 at 10:37am
Yes, that net is 88% of appraised value. 30 days after the date on the PFS form required net goes down to 86%, 30 days after that down to 84% which is the floor. You can list it at a price that achieves the required net. Also now that you have that out of the way it's easier to get the deal done because the lender will just have to do a sales contract review and according to guidelines they only have 5 business days although I haven't seen them get it done that fast. Cool thing is a short wait for the buyer. Once I have a PFS ATP I advertise it that way.
Comment by Wendy Rulnick on November 23, 2009 at 10:14am
Yes, the form has listing price 119,900. Price offered 115,000. Appraised Value 121,000. 90% of appraised value 108,900. Estimated net sale proceeds 106,794....
Comment by Stephanie Lim on November 23, 2009 at 10:07am
Wendy-90% of the lienholders appraised value?
Comment by Wendy Rulnick on November 23, 2009 at 9:45am
I don't do a lot of HUD short sales. I just received a HUD short sale approval that states 90% of value. The offer was for a higher amount than that. The buyer walked. Now may I reduce the price to 90% that is on the document?
Comment by Teresa Turner on November 22, 2009 at 11:48am
Had an FHA short sale recently that was a student condo that the person vacated after they graduated and moved to Orlando with her husband for his job. It took a while, but SunTrust worked it out.
Comment by Tad Navle on November 19, 2009 at 11:40am
Bank Of America has a new FHA form packet and guidelines for your short sales. If you are using the old countrywide forms - call them and get new ones.
Comment by Stephanie Lim on November 18, 2009 at 7:43am
The FHA guidelines say that the seller and the seller's agent is entitled to a copy. Have you tried pointing that out to them? I had the same experience with WF. Appraisal grossly overstated value. WF refused to budge. I tried EVERYTHING. Provided tons of comps. Never budged. Don't guess your negotiator's name is Will is it? ;-)

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