Are you a homeowner who has an FHA backed mortgage? Are you trying to arrange a short sale? HUD has its own set of rules for how low the price can go on your home. Knowing the limitations can help you assess the likelihood that your home will actually sell in the four month allotted time period. Don’t blame your real estate specialist if they can’t negotiate with the lender to agree to a lower price. For mortgages that fall under HUD oversight, lenders aren’t permitted to approve offers that would cause the Net Sale Proceeds to fall below the allowable threshold of 88 percent of the appraised Fair Market Value (FMV). You may need to simply be patient and wait for the price to become more attractive to buyers. After the first 30 days the house is on the market, the permissible price drops to 86 percent. For the final 60 days, the price can go as low as 84 percent of FMV. Of course, you can’t just wait to market the property until later in the game. Borrowers are required to actively market the property starting upon approval of their “pre-foreclosure sale” application when the clock starts ticking. Learn more facts about HUD short sales here.