Understanding The FHA Short Sale A homeowner may be eligible for an FHA short sale if the hardship of seller is determined by the HUD. The government has its involvement in short sale so almost all the FHA short sale falls under the Housing and Urban Development guidelines. A short sale may be tricky and confusing to understand for agent and sellers. Below given tips may be helpful to understand the FHA short sale. FHA Short Sale Guidelines If the short sale is on the short track to nowhere, then there are chances that it is stuck in the FHA waterfall. FHA may want to look for loan modification possibilities. Your FHA short sale process will be much faster if your loan modification was rejected. The home is identified as 1 to 4 units. This means a duplex or fourplex can qualify for the FHA short sale, but a 5-unit apartment building cannot. Vacant houses are not allowed to be renting out more than eighteen months. A variance must be obtained to proceed th...