- specifically permitted by HUD regulations; or
- the restriction had been specified in a junior lien granted to the Mortgagee after settlement.
The Mortgagee must send the applicable Notice to Homeowner: Release of Personal Liability to:
- all applicants for FHA-insured Mortgages, before settlement; and
- sellers or buyers who request information on HUD’s creditworthiness review criteria or procedures for assumptions or releases from personal liability.
- attempt to obtain the forwarding address of the selling Borrower;
- advise the selling Borrower to update the mailing address as needed; and
- advise the selling Borrower that any existing Property Assessed Clean Energy (PACE) obligation that will remain with the property must be fully disclosed to the buyer in accordance with applicable law (state and local) and made part of the sales contract.
- Handbook 4000.1 Section III.A.3.b.i-ii and vii at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
- Mortgagee Letter 2017-06 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee