When a HECM mortgagor dies, how is the six-month timeframe for initiation of foreclosure determined?

Mortgage Servicers are required to commence foreclosure within 6 months of the mortgagor's actual date of death.

Mortgagee Letter 2016-03 provides reasonable diligence requirements and effective dates, including a listing, by state, of the first legal action necessary, as well as the typical security instrument used to initiate foreclosure and is available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

HUD's Servicing Contractor
Novad Management Consulting
Shepherd’s Mall
2401 NW 23rd Street, Suite 1A1
Oklahoma City, OK 73107

Toll-Free Telephone Number: (800) CALLFHA (255-5342)
Fax Number: (800) 489-1733

Borrower inquiries (HECM or Forward):

HECM Servicer inquiries:

Extensions and Variances Automated Requests System (EVARS) and E-Class assistance:

Payoff requests for Secretary-Held HECM mortgages:

Mortgagee Letter 2016-03 available at:    https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

Federal Register 24 CFR 206.125(d)(1) available at:  https://www.ecfr.gov/cgi-bin/text-idx?SID=5cd6600fc134736613632d4a41538244&mc=true&node=se24.2.206_1125&rgn=div8

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-01846