Are second homes and investment properties eligible for disposition under a Streamlined Pre-Foreclosure Sale (PFS)?

The Mortgagee may offer the Streamlined Pre-Foreclosure Sale (PFS) process for all Properties securing FHA-insured Mortgages, provided that all Borrowers meet all program requirements. Such Properties may be vacant but cannot be condemned. 

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

Guidance for eligible properties is located in Handbook 4000.1 III.A.2.l.ii.(B)(2)(a)(iii) at


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03472