04/28/2025
FHA Expands Access to Foreclosed Property Sales to All Buyers
Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-13, Updates to Claims without Conveyance of Title (CWCOT) Post-Foreclosure Sales Period and HUD Real Estate-Owned Properties (REO) Exclusive Listing Period. This ML rescinds policies established in MLs 2022-01 and 2022-08, dated January 13, 2022, and May 5, 2022, respectively, which were later incorporated into FHA’s Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). Specifically, FHA is:
• Removing the exclusive 30-day sales period for owner-occupants, HUD-approved nonprofits, and government entities as part of the CWCOT post-foreclosure sale process; and
• Reverting the exclusive listing period on the HUD HomeStore website for REO properties from 30 days to the previous exclusive listing period of 15 days for owner-occupants, HUD-approved nonprofits, and government entities.
Removing these requirements aligns with the Trump Administration’s goals of reducing unnecessary burdens and saving taxpayer funds. FHA’s evaluation of these policies has revealed the efforts were generally not successful in meeting their intended goals. Instead, they have delayed sales of foreclosed properties, increased the deterioration of these properties leading to lower sales prices, and increased costs for the Department of Housing and Urban Development (HUD).
Additionally, the Single Family Default Monitoring System (SFDMS) Reporting Codes and Reporting Elements was updated and is available on the supplemental documents webpage.
FHA systems will be updated concurrently with the effective date of the ML.
These provisions will also be incorporated into a future version of Handbook 4000.1.
Mortgagees and other interested parties are encouraged to review ML 2025-13 and contact the FHA Resource Center (referenced below) with any questions.
