HUD-90045 Approval to Participate

Approval to Participate
Pre-foreclosure Sale Procedure
Property Sales Information
Property Occupancy & Maintenance

U. S. Department of Housing
and Urban Development

OMB Approval No.2502-0464
(exp. 07/31/2009)

Office of Housing
Federal Housing Commissioner

Public reporting burden for this collection of information is estimated to average 9 minutes per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. This information is required to obtain benefits. HUD may not collect this information, and you are not required to complete this
form, unless it displays a currently valid OMB control number.
Section 204 of the National Housing Act authorizes the Secretary to pay an insurance claim that bridges the gap between the fair market
value proceeds from the HUD-approved third party sale of a property. The respondent’s maybe lenders (mortgagee’s), counselors and
homeowners who are attempting to sell their properties prior to foreclosure. The Privacy Act of 1974 pledges assurances of confidentiality to
respondents. HUD generally discloses this data only in response to a Freedom of Information request.
Mortgagee Contact Person and Phone Number:
Homeowner Name(s):

Control Number:

FHA Case Number:

Date:

Property Address:

Homeowner Signature(s):

Homeowner(s): Please Read This Information Carefully.
other costs normally paid by the buyer, you must pay for these
Approval to Participate
Your interest to participate in the HUD Pre-foreclosure expenses. You must also pay prorated real estate taxes and
Sale procedure has been approved. By signing this form and
assessments at closing. Your mortgagee can explain which sales
returning to the above referenced mortgagee within 7 days, you
costs may be deducted from HUD's sale proceeds.
are agreeing to abide by the following conditions of the program.
Relocation Services
A relocation service affiliated with your employer may
Property Sales Information
The property must be listed for sale with a licensed
contribute a fixed sum towards the proceeds of the PFS, without
Realtor unrelated to you within 7 days of your receipt of this
altering the arm’s length nature of the sale. This contribution
letter for a list price at or near $ ________, which is the "AS IS"
simply reduces the shortfall between the proceeds and the
value indicated on the appraisal of your property. The listing
amount owed on the mortgage note. As with any other PFS,
agreement must include the following specific cancellation
such a transaction must result in the outright sale of the property
clause in the event the terms of a sale are not acceptable to
and cancellation of the FHA mortgage insurance.
HUD: “Seller may cancel this agreement prior to the ending date
Occupancy and Property Maintenance
of the listing period without advance notice to the broker, and
You are responsible for property maintenance and
without payment of a commission or any other consideration if
repair until closing. This includes but is not limited to cutting
the property is conveyed to the mortgage insurer or the mortgage
the grass, snow removal, regular interior and exterior cleaning,
holder.” The sale completion is subject to approval (under HUD
immediate repair of broken doors and windows, and paying
guidelines) by the mortgagee.
utility bills as they become due. If the property is vacant or
Your deadline to obtain a signed Contract of Sale from
becomes vacant during marketing, you must inform your
a qualified buyer is ______________. If you have not been able
mortgagee immediately and ensure that the property is protected
to obtain an acceptable contract by that date, your mortgagee
from freeze damage by "winterizing" plumbing pipes. You may
must recommence foreclosure or accept a deed-in-lieu of
arrange with your sales agent to provide property maintenance
foreclosure.
but you will continue to be responsible for the condition of the
home until it is sold. Damage and repair expenses resulting
Acceptable Terms of Sale
Program criteria require that “net” amount payable to
from fire, flood or other natural causes must be reported
HUD as a result of this sale, after allowable expenses will be at
immediately to the insurance company and to your mortgagee.
least $ ______________. You must submit your proposed
Borrower's Incentive Compensation
Contract of Sale for approval to the Mortgagee Contact named
If you successfully close a sale of your home under this
above. The sale must be an “arm’s length” transaction; the buyer
procedure, you will be paid compensation of $750 at closing.
cannot be a member of your family, business associate, or other
Your compensation will increase to $1,000 if the sale of your
favored party. No hidden terms or special understandings can exist property closes on or before _____________. You may elect to
between you, the buyer, appraiser, sales agent or mortgagee. If
receive cash or apply some or all of the compensation to sales
you negotiate with a buyer to pay for discount points, a home
costs not paid by HUD, for example, discount points, or home
warranty, repairs not required for a new mortgage, transfer taxes or warranty plans. You may also use it to pay off junior liens.
Questions concerning any of this information, or your responsibilities in the Pre-foreclosure Sale procedure, must be directed to
the contact person at your mortgagee's office at the above telephone number.
form HUD-90045 (06/2003)
ref. Handbook 4330.1