The US Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2014-15 on July 10 allowing dual agency agreements in FHA pre-foreclosure transactions. The new guidance will preserve dual agency agreements in FHA short sales, but require the properties to be listed for at least 15 calendar days before any offers are evaluated. After the 15-day period, offers may be evaluated as they are received. If multiple offers are received, the listing agent or broker must forward the offer that provides the highest net return to HUD and meets HUD's criteria for bid requirements.

 

These requirements must be implemented for all "New Approvals to Participate" no later than October 1, 2014.

 

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