The Mortgagee must perform the initial Occupancy Inspection no later than the 60th Day of delinquency when:
- the Mortgage is in Default;
- a payment has not been received within 45 Days of the due date; and
- efforts to reach the Borrower or occupant have been unsuccessful.
When payments are not submitted as scheduled by a Borrower in bankruptcy, the Mortgagee must contact either the bankruptcy trustee or the Borrower’s bankruptcy attorney for information concerning the status of the Borrower, to determine if an Occupancy Inspection is needed. The Mortgagee must continue to perform exterior-only visual inspections until the Default is cured, the Property is disposed of, or the bankruptcy court has granted approval for the Mortgagee to contact the Borrower or to take any required Property Preservation and Protection (P&P) actions. If the Mortgagee determines that the Property is vacant or abandoned during the period in which the Mortgagee is prohibited from contacting the Borrower, the Mortgagee must note:
- the date it made its determination in the servicing file; and
- that contact with the attorney or trustee has been made.
If the Mortgagee determines through an Occupancy Inspection that the Property is vacant or abandoned, the Mortgagee must:
- send a letter, via certified mail or other method providing delivery confirmation, to Borrowers at the property address informing them of the Mortgagee’s determination that the Property is vacant or abandoned. This letter must include the Mortgagee’s contact information;
- commence Vacant Property Inspections; and
- take appropriate Property Preservation and Protection actions to secure and maintain the Property.
- the dates and methods of Occupancy Follow-Ups and vacancy letters;
- evidence of payment to the inspector;
- copies of all completed inspection reports; and
- any accompanying follow-up documentation for Occupancy Inspections.
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.h.xi. (B)-(C) at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh