A Home Equity Conversion Mortgage (HECM) with a Case Number assigned before August 4, 2014, is considered due and payable without HUD’s approval if:
- a borrower died and the property is no longer the principal residence of at least one surviving borrower; or
- a borrower conveyed all of their title in the mortgaged property and no other borrower retains title to the property
A HECM with a Case Number assigned before August 4, 2014, is considered due and payable with HUD’s approval, if one of the following conditions applies:
- no surviving borrower maintains the property as their principal residence;
- a borrower fails to occupy the property for a period of more than twelve consecutive months because of physical or mental illness, and the property is not the principal residence of at least one other borrower; or
- an obligation of the borrower under the HECM is not fulfilled.
For more information see Mortgagee Letter 15-10 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Any additional questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to firstname.lastname@example.org. Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at (800) 877-8339.