FHA mortgages come with a built-in exit: HUD’s Pre-Foreclosure Sale (PFS) program lets you sell your home for less than you owe — with the foreclosure on hold while we market it.
Approved sellers can receive relocation assistance at closing, and the lender pays our commission.
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DRE #02016456 · Beverly & Company · SFR® Short Sales & Foreclosure Resource · ★★★★★ Zillow Rating · $60M+ in Closed Sales
FHA loans are designed for working families, and HUD knows hardship happens. That is why the Pre-Foreclosure Sale program exists: a formal, documented path to sell your home, settle the debt, and leave with a clean break instead of a foreclosure. But the program has paperwork, deadlines, and an appraisal process most agents have never touched.
I’m Nick Hedberg, founder of We Sell Houses LA. FHA and VA workouts are a specialty of ours — we know the forms, the timelines, and how to keep a file moving so the approval comes before the auction does.
We confirm your loan is FHA, review your hardship and timeline, and request the Approval to Participate from your servicer.
An FHA appraisal establishes fair market value and the program’s minimum terms. We list and market the home within HUD guidelines.
The sale pays off the loan per HUD’s rules, the lender pays our commission, and qualifying sellers receive relocation assistance at closing.
Out of pocket. The lender pays our commission, and program costs come from the sale.
Relocation assistance HUD’s program can pay qualifying sellers at closing.
Foreclosure action is paused while you participate in the program and market the home in good faith.
Mid-divorce and newly out of work, Nicole and John had run out of money to finish the projects around the house — and the foreclosure auction was almost here when they reached us. We got the auction stopped and completed their short sale with PennyMac. They walked away with a lender-paid relocation fee and no foreclosure on their credit.
Antonio called us the night before his home was set to go to auction. He had lost his job twice and couldn’t catch up on payments — and his wife and two kids were living in the house. We got the foreclosure postponed, worked with Fannie Mae, and got his short sale approved. No foreclosure on his record, and his family moved forward on their own terms.
Check your closing documents or monthly statement for “FHA” or a HUD case number — or call us and we can usually confirm it in minutes from your loan details. FHA loans are common in Los Angeles, especially on homes bought with low down payments.
It is HUD’s official short-sale program for FHA loans. Once your servicer issues an Approval to Participate, the foreclosure is put on hold while the home is listed. An FHA appraisal sets the minimum sale terms, and an approved sale satisfies the mortgage debt.
The core requirements are a documented hardship — job loss, divorce, medical bills, income reduction — the home generally being your primary residence, and owing more than the home is worth. Some occupancy and arrears rules have exceptions, which is exactly what our free eligibility call checks.
Qualifying sellers can receive relocation assistance — often up to $3,000 — paid at closing under the program. We confirm the exact figure in your Approval to Participate paperwork.
An approved FHA pre-foreclosure sale satisfies the debt under program rules, and California’s short-sale law (Code of Civil Procedure §580e) bars lenders from pursuing the balance on approved short sales of one-to-four-unit homes.
Call immediately. Between the program’s foreclosure hold and California’s AB 2424 listing postponement, we have two separate tools to stop the clock — but both work better with more runway.
Free, confidential options review — no obligation, no judgment.
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