HUD Short Sale / Preforeclosure Sale Guidelines

If you are a seller with an FHA loan, there are very specific requirements that have to be met for short sale approval by the bank who holds your mortgage.  A short sale occurs when you sell your home owing more than what your home is worth in today's market.

  • The property must be owner occupied, no walk-aways, and no investment property.

  • The net proceeds from the sale, after all customary seller closing costs, have to be at least 82% of Fair Market Value of the property.  The fair market value is determined by a FHA appraiser who has no interest in the property.

  • The appraised value of the home has to be at least 63% of the balance owed on the mortgage. 

  • The seller must be at least 31 days delinquent on the day of the preforeclosure/ short sale closing.

  • Seller must provide documentation of decrease in income and/or increase in living expenses and documentation that verifies that the seller needs to vacate the property.

  • The sale has to be to a third party and must be an arms-length transaction.

If you are in a situation where you can no longer afford your home and can not obtain a modification or refinance give us a call.  We are Jacksonville short sale specialists and will go over the short sale process with you and determine whether we think we can help you. 

Our short sale services are free to you, they are paid as part of the closing costs covered by the bank in the deal.  There is never any money due upfront and we do not charge a penalty if you later obtain a loan modification, decide to file bankruptcy, or have a change in circumstances that allow you to keep your home before we go under contract with a buyer.

We encourage our Jacksonville short sale clients to continue to try to find a way to keep their home, because that is the best possible scenario for you.