The mortgagee is required to notify HUD when a mortgagor dies and the property is not the principal residence of at least one surviving mortgagor. Notice must be sent to HUD as soon as possible following the death, but no later than 60 days from the date of the mortgagor's death.
HUD expects mortgagees to exercise prudent servicing and reasonable diligence to ensure that occupancy is verified on an annual basis. The mortgagee must provide a written certification for the mortgagor's signature annually, and although written certification may be useful in determining the mortgagor's occupancy status, other supplemental measures may be needed to effectively determine date of death to meet the six (6) month requirement for first legal action. Mortgagees may consider subscribing to one of several commercial resources that offer a monthly match of loan files against Social Security database of death records.
Notification of the date of death applies to the "interest due date" on any subsequent claim submission.
HUD’s Servicing Contractor
Novad Management Consulting
2401 NW 23rd Street, Suite 1A1
Oklahoma City, OK 73107
Toll-Free Telephone Number: (800) CALL FHA (225-5342)
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 (ML) 2003-22
HUD Handbook 4330.1 REV-5 Section 13-22