If there are multiple reasons for default, such as non-occupancy and failure to maintain the property in good repair, which reason should the servicer submit as the reason for default in a HECM Due and Payable request to HUD?

The servicer would evaluate the full circumstances of the default and submit a Due and Payable request to HUD for approval, according to the specific facts of each case.  The Due and Payable approval will be rescinded once all reasons for the default have been cured.

Any additional questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to answers@hud.gov

 

HQ Policy Determination
 


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-01535