Tag FHA Short Sale Rule

Tag FHA Short Sale Rule

HUD Delays Ban on Dual Agency for Short Sales on FHA Loans

John Thomas September 29, 2013 Tags: , , , ,
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HUD Delays the Ban on Dual Agency for Short Sales on Properties with FHA Loan being sold short.  The rule was to go into effect on October 1, 2013 as outlined in mortgagee letter 2013-23 released in July 2013.  The rule stated that brokers and their agents may only represent the buyer or the seller, but not both parties.  This is commonly called dual agency so the rule thus makes it illegal for an agent that works for the brokerage of the listing agent to represent a buyer in the purchase of a short sale. Keep Reading...