- within the two years immediately preceding the initiation of the current foreclosure action, the Mortgagee has accepted reinstatement in a previous foreclosure action;
- reinstatement will preclude foreclosure following a subsequent Default; or
- reinstatement will adversely affect the priority of the mortgage lien.
- reasonable and customary for those services, as established in the Mortgagee Property Preservation and Protection Action section; and
- consistent with HUD requirements, state law, and security instruments.
- the Mortgage was reinstated or paid in full;
- the Mortgagee has performed and properly documented the inspections pursuant to HUD requirements; and
- the cost of each inspection was reasonable and within the cost limitation established by HUD.
If the Mortgagee cancels a foreclosure action for a Loss Mitigation Option, a reinstatement, or a payment in full, the Mortgagee may charge the Borrower for attorney’s fees as follows:
- The attorney’s fees to be paid by the Borrower must be commensurate with the work actually performed to that point.
- The amount charged may not be in excess of the fee that HUD has established as reasonable and customary for claim purposes.
- cancel the appraisal if the appraisal has not yet been completed; or
- request that the Borrower reimburses the Mortgagee for the cost of the appraisal as part of foreclosure-related expenses, if the appraisal cost was validly incurred.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to firstname.lastname@example.org. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
See policy in Handbook 4000.1 Section III.A.2.q.i-iii. at: