- the FHA mortgage insurance is still active for the FHA case number;
- the FHA-insured Mortgage is not subject to indemnification;
- the Mortgagee has worked with the Borrower to exhaust all Home Retention Options and has determined that the Borrower’s case does not meet the criteria for a Home Disposition Option, or the Mortgagee has been unable to locate the Borrower, and the Property is vacant or has been abandoned by the Borrower;
- the Property has no Surchargeable Damage; and
- the Mortgagee’s projected conveyance claim amount would be equal to or greater than the CAFMV.
Either the Mortgagee or a third party will be the successful bidder at the foreclosure sale. Notwithstanding the foreclosure sale, the Borrower or a third party may exercise a legal right and redeem the Property.
Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.
See policy in Handbook 4000.1 Section III.A.2.p.ii.(B) and III.A.2.p.v. at: