Where a Home Equity Conversion Mortgage (HECM) is due and payable as a result of death of the borrower or end of a Deferral Period due to death, the Mortgagee must provide the borrower’s estate, heirs, or other party with legal title to the property securing the HECM with a Due and Payable Notice within 30 days of the death or end of the Deferral Period stating that they may:
- satisfy the HECM;
- sell the property for at least 95% of the appraised value; or
- provide the Mortgagee with a Deed-in-Lieu of foreclosure.
Notwithstanding the foregoing, for mortgages with a Case Number assigned before August 4, 2014, where the last surviving borrower has died and there is a Surviving Non-Borrowing Spouse, Mortgagees must follow the notice requirements in Mortgagee Letter (ML) 15-15.
ML 15-15 is available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
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