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

Comment

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Comment by Dean E Eshelman, CPA, CDPE, IRES on August 28, 2018 at 10:29am

@Neddie PFS@Brett Goldsmith Internal Revenue Code(IRC) Seciton 108 Cancellaltion of Debt (COD) also known as the insolvency statute. Yes talk to CPA -- Basically, iSec. 108(a)(1)(B) provides for the exclusion of COD income if the debt discharge occurs when the taxpayer is insolvent. Sec. 108(d)(3) defines insolvency of the taxpayer as the excess of liabilities over the fair market value (FMV) of assets determined immediately before the discharge of debt. The excluded income is limited to the amount by which a taxpayer is insolvent, as stated in Sec. 108(a)(3). For example, if the taxpayer has COD income of $500,000 and the excess of liabilities over assets immediately before the discharge is $450,000, the taxpayer includes $50,000 of COD income in his or her gross income

Comment by Brett Goldsmith on August 28, 2018 at 10:06am

@Neddie PFS short sales always settle debt in full. 1099C will be for settled amount and borrower should look into if they are insolvent or not.

Comment by Neddie B. on August 28, 2018 at 8:06am

The HUD short sale was approved (PreForeclosure Sale Program). The approval states:
"The net amount will be accepted as final payment and the lien released, an IRS 1099C will be filed at year end in accordance with IRS regulations."
It sounds like a full release. No mention of the note though. What's your take? TYIA

Comment by Brett Goldsmith on July 25, 2018 at 4:13am

@AL typically short sales are sold as-is and repair costs will not be approved. Repairs should be baked into the purchase price.

[email protected]

310-564-6389

www.ishortsalenow.com

Comment by Al on July 23, 2018 at 4:38pm

Is repair allowance or repair assistance allowed a fha short sale? 

Comment by Brett Goldsmith on July 13, 2018 at 4:27am

@AL You should confirm but I believe the 15 day marketing period may not be required for the PFS program if the property is in foreclosure. Typically an offer is needed to get an appraisal ordered if a FHA borrower is in foreclosure.

[email protected]

310-564-6389

www.ishortsalenow.com

Comment by Al on July 12, 2018 at 10:02am

Started Working on a FHA short sale with a foreclosure sale date scheduled in well over a month. Bank has agreed to do a short sale and 1st legal has been filed. We have submitted an offer and the bank has order an appraisal. My understanding is the property has to be listed on the MLS for at least 15 days after the ATP has been issued before the accepts any offer. Would it be any different if 1st legal is filed? Fellow members your input would be helpful!

Comment by Brett Goldsmith on November 2, 2017 at 6:09am

@kimberly Yes, I've experienced before. They won't do a short sale if they advance taxes and aren't reimbursed.

[email protected]

310-564-6389

www.ishortsalenow.com

Comment by Kimberly S. Ruley on November 1, 2017 at 7:17am

I was just informed by NOVAD that the back taxes that were just paid by them will need to be added to the sales price for approval. In other words, the buyer has to reimburse HUD for the taxes paid above the 95% of value. Anyone ever dealt with this? I think this is going to kill the deal we have.

Comment by Kimberly S. Ruley on October 6, 2017 at 12:56pm

Brett, I'm sending you an email and will call you tomorrow or Monday.

 

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