FHA Pre-Foreclosure Process

If you are a home owner contemplating a short sale and your loan is an FHA loan there are steps that need to be followed. At National Real Estate Law Group we will manage the process for your from start to finish.

FHA’s pre-foreclosure process is detailed on their web site at http://www.hud.gov/offices/hsg/sfh/nsc/faqpfs.cfm.  We have found that their process while functional on some level is often a fail for our clients when followed as they have it set up.  The biggest problem is with them setting the listing price for the home owner prior to the home owner listing the property for sale.

  • List Price Too High – Often the List Price is substantially above the market value of the home resulting in no offer.
  • Not Viable if Foreclosure in Place – This is a PRE-foreclosure program and not an option if the foreclosure has started.

Our process for a home owner wishing to participate in an FHA Pre-Foreclosure Sale is as follows.

  • Identify a home owner’s loan is an FHA loan through our online consultation form
  • Home owner submits their short sale documents to us using our online submission form located at http://nrelg.com/submit-short-sale-forms/seller-document-upload/
  • We review the file and then assign the case to one of our Asset Managers.
  • Our Asset Manager will then reach out directly to the home owner for additional details if needed.
  • NRELG’s (National Real Estate Law Group) Asset Manager will then contact the home owner’s 1st lien holder to discuss the property and FHA Pre-Foreclosure process.
  • FHA Pre-Foreclosure requires that they set the list price prior to your activating a home in the MLS or accepting an offer.  If you are looking for an approval with this process it is best to follow their guidelines and wait to list until they supply the approval and price to list the home at.
    • There are rare times when we might suggest listing the property in the MLS to procure a purchase contract and to start the process with the Bank after, not before a contract is received.
  • We will stay directly involved with the process from listing, to contract and through negotiations to closing.
  • The short sale process as well as the FHA Pre-Foreclosure process is complicated and stressful.  We will always evaluate the information received and communicate any concerns we might have.

Purchase Contract Notes:


If you would like to arrange a FREE CONSULTATION please complete our request form located at http://nrelg.com/submit-short-sale-forms/schedule-your-consultation/

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