May a Mortgagee file a Claim Type 23 when a HECM has been extinguished by Sale After Death?

When a Home Equity Conversion Mortgage (HECM) is extinguished by sale or transfer after death or, if applicable, the end of a Deferral Period, a Mortgagee may file a HECM Claim Type 23 provided that the Mortgagee receives, in exchange for the extinguishment of such HECM, at least the lesser of:
  • the mortgage balance; or
  • ninety-five percent (95%) of the current appraised value of the property. 
For more information see Mortgagee Letter 15-10 available at
Any questions may be directed to HUD’s National Servicing Center at (877) 622-8525. Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at (800) 877-8339.

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-02434