What are the appraisal requirements on the foreclosure of an FHA Reverse Mortgage?

The mortgagee must order an appraisal from an FHA Roster Appraiser if foreclosure proceedings are initiated. The mortgagee must bid the lesser of the debt or the current appraised value, as provided by HUD's Loan Servicing Contractor at the foreclosure sale.

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

Toll-Free Telephone Number: (800) CALLFHA (225-5342)
Fax Number: (800) 489-1733

Borrower inquiries (HECM or Forward)
   customerservice@novadconsulting.com 

HECM Servicer inquiries
   hecm.servicing@novadconsulting.com

Extensions and Variances Automated Requests System (EVARS) and E-Class assistance
   support@novadconsulting.com

Payoff requests for Secretary-Held HECM mortgages:
   answers@hud.gov
   and
   hecm.payoffs@novadconsulting.com

Mortgagee Letter 03-22
   https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

Handbook 4330.1, Section 13-34
   https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


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-02536