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How Long to Cancel and FHA Case Number??

My wife and I had some interest in a property and a FHA Case Number was processed without our knowledge back in April 2010.  We made it very clear to the builder that we were not using his/her lender, in any event a case number was pulled without our knowledge.  Needless to say we did not proceed with this builder..

Fast forward to October 2010, our current lender created a case number, without knowledge (ours or theirs) of the previous number being created, and we are now in the position of trying to cancel the previous case number.  We are now in a position where our new home is complete, our mortgage preparation is all but completed awaiting the cancellation of the initial case number.

Does anyone know what the time frame for Case Cancellation by the respective FHA department? We are nearing the occupancy limit on the purchase agreement for the home we sold and are hopeful not to have to move twice!!!

Thanks..
  • November 01 2010 - Macomb Township
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Answers (8)

13 months to cancel automatically. You can call FHA and request the number to be cancelled because it was never processed for a new loan. 
  • May 08 2014
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Got FHA case number at the end of Dec for new construction home. Construction has not started due to horrible snows this winter in the NE. We are in danger of the case number expiring before our home is even completed. What can be done in regards to extending the life of the case number until after construction is completed and we can finally go to closing. Thanks!
  • May 07 2014
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The answer is 13 months.  The FHA handbook states in  chapter 7 that   CHUMS automatically cancelles FHA Cases after 13 months. 

This is the link to the FHA Handbook
http://portal.hud.gov/FHA-Handbooks/collections/current/print/4155-2_7.pdf

  • March 03 2011
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Case numbers can be transferred from lender to lender. Many lenders do not like to do this as it involves a small amount of work on FHA Connection and most mortgage loan officers may not have access to FHA connection only underwriters do in some cases. If left untouched then a case number automatically cancels after 13 months on FHA connection.

  • January 28 2011
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Thank you to those that have contributed to this string.

After much work and numerous phone calls, we were able to have this situation resolved in 3 business days.  When speaking to the FHA Case department they stated that many lenders do not know where to look when researching whether a case has been cancelled.  If not for my phone calls we would have likely had to wait longer for word from our lender.

I am in no way a mortgage pro, but these are lessons learned from our experience..
  - FHA Case #'s are in fact assigned to properties
  - FHA Case #'s can in fact be cancelled just as ours was,
  - A law or guideline should be in place to restrict when an FHA Case # is generated without knowledge of the mortgagee,
  - Ensure that the initial underwriting process review for dual FHA Case #'s, ours was not found until final underwriting, causing further delays

Again, these results may not apply to all but these are the facts as they applied to our situation.
  • January 25 2011
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Sounds like someone is confused.  FHA Case #'s are specific to properties, not to people.  As long as the Case # previously issued was for a different property than you are currently buying it has no bearing on anything.   If the property you are currently trying to purchase previously had a Case # issued on it for a transaction that did not proceed to closing the lender that Case # was issued to can assign it to your lender within FHA Connection in a matter of minutes. 
  • January 24 2011
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Up to 10 business days if you ask FHA. When you have multiple case numbers associated with your name and one or more need to be cancelled. I had one cancelled in December 2010 and it took 8 business days after the actual lender requested it.

Mike House - First World Mortgage
  • January 24 2011
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Case numbers dont get cancelled. You will need to have the old number transfered to the lender you are working with. Your new lender should be able to tell you what to write and can take care of the rest for you. A simple one line letter with the transfer numbers (case number and lender number) will be suffcient.
  • November 01 2010
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