FHA Short Sales

If you have an FHA loan, your short sale will be processed as an FHA short sale. In order to obtain any Cash for Keys type payment, you must at least qualify for the short sale program applicable only to FHA loans. By applying to your lender for a short sale, you are automatically applying for acceptance into this program if you have an FHA mortgage. You may qualify for the FHA short sale program if:

  • You are 31 days late on your FHA mortgage.
  • You are in default because of some unavoidable and “adverse” financial situation.
    This includes, but is not limited to, job loss, illness or some kind of situation that resulted in income reduction and can be documented and verified. See more short sale hardship reasons.
  • You own and occupy a house, townhouse, condo, duplex or four-plex with an FHA loan.
    Exceptions to this rule are granted if it can be shown that the reason you are not living in the property is the same reason you’re not making your payments. For example, loss of job, job transfer, divorce, death). In addition, the property cannot have been purchased as a rental or have been used as a rental for more than 18 months before your acceptance into the PFS program.
  • You have only one FHA-insured loan.
    You may request an exception if you acquired an FHA-insured property through an inheritance or are the co-signer on an FHA-insured loan.
  • You are not a corporation or a partnership.
    You may request an exception to this one by issuing a written request to HUD’s National Servicing Center.

FHA Short Sales: Check your eligibility now.

To obtain information about your eligibility, please fill out this form. You may also phone in this information to 702-675-8211.


Your Las Vegas short sale agent works with your lender who in turn works with the government agency get approve your FHA short sale.

  1. You and your Las Vegas short sale agent initiate the process with your lender.
  2. A “Welcome package” will be sent to you, the homeowner, with all necessary formsand requirements. Documents must be filled out and sent to the bank within a certain period of time.
  3. An “AS IS” appraisal will be scheduled. This appraisal will set the market price.
  4. You will be reviewed for all alternatives to foreclosure, including a loan modification. If accepted into the program, you will receive “Approval to Participate” Letter and form.
  5. Approval to Participate form must be completed and sent back WITHIN 7 DAYS.
  6. Your Las Vegas short sale agent will now market the property. It must be marketed at market value as determined by the appraisal. A maximum of 120 days is allowed for the sale to be completed. DURING MARKETING PERIOD: 1.) The property must be maintained (eg. Lawn care, repairs, etc.); and 2.) The utilities must remain on.
  7. Your Las Vegas short sale agent manages offers and closes the sale as in traditional short sale.