If clauses (a) and (c) of the PFS Addendum are impermissible under state law, the Mortgagee may strike these clauses from the PFS Addendum prior to execution, provided that the transaction complies with all PFS program requirements.
All parties involved in a PFS transaction must sign and date a PFS Addendum as a contingency for a PFS transaction to close.
Prior to closing, the Mortgagee must provide the closing agent with the PFS Addendum that was signed by:
- buyers;
- buyers’ agent;
- sellers;
- sellers’ agent (listing agent);
- escrow closing agent; and
- transaction facilitators/negotiators, if applicable.
- pay the expenses out of the Net Sale Proceeds and forward the Net Sale Proceeds to the Mortgagee;
- forward a copy of the Settlement Statement or similar legal document to the Mortgagee to be included in the Claim Review File no later than three business days after the PFS transaction closes; and
- sign the PFS Addendum on or before the date the PFS transaction closes, unless explicitly prohibited by state statute.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
For policy information see Handbook 4000.1 III.A.2.l.ii. and IV.A.1.c. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh