FHA PREFORECLOSURE-NOT THE SAME AS A REGULAR SHORT SALE

I just closed my first FHA short sale, which isn't even referred to as a short sale, but rather as a Preforeclosure Sale.  It has many similarities to that of a Fannie Mae short sale, but is very different as well.  One very nice thing about the FHA Preforeclosure is that after the seller is accepted into the program, the appraisal takes place, and HUD already has predetermined guidelines in place as to what price will be acceptable.  The Fair Market Value is determined by this appraisal and HUD will require a net of at least 88% of this Fair Market Value in the first 30 days that the property is listed, 86% in the next 30 days of listing and 84% in the next 90 days.