If there are no funds or insufficient funds remaining in the Set-Aside, the borrower will be responsible for the payment of all property charges. The Mortgagee (Lender) must ensure:
- The borrower is notified, in writing, within 30 days of the Mortgagee receiving notification that a property charge payment is outstanding;
- Recommends the borrower speak with a HUD-Approved Housing Counselor; and
- HUD is informed within 30 days of the Mortgagee receiving notification that a property charge payment is outstanding.
For additional information see Mortgagee Letter 2014-21 and 2015-11 at https://www.hud.gov/program_offices/housing/sfh/hecm/hecmml