Despite a recovery and expansion of housing markets around the country, REALTORS® are continuing to see a number of homeowners who need to pursue Federal Housing Administration (FHA) preforeclosure sales or "short sales." A short sale is often the best option for homeowners who are "upside down" on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.
The FHA preforeclosure sales program has specific requirements that homeowners must meet prior to participating in the program. The following resources will provide information on FHA short sales and links to help you navigate FHA's short sale website:
FHA Short Sale Dual Agency Policy
Loss Mitigation Policy & Guidance
HUD Preforeclosure Sales Programpdf
NAR Letter to FHA Commissioner Galante Regarding FHA’s Single Family Loan Sales Programpdf