Prior to the conveyance of a Property to HUD, Mortgagees must research, obtain, and pay all available utility bills that may become a lien attached to a Property after foreclosure as follows:
- In states where utilities are not required to remain on to protect the Property, Mortgagees must obtain and pay a final bill up to the date of conveyance.
- In states where utilities are required to remain on, Mortgagees must pay:
- all available bills that are due prior to conveyance; and
- within 60 Days after the date of conveyance, the final bill calculated to the Day on which utilities are transferred to HUD.
For Properties in states where utilities are required to remain on, the Mortgagee must upload to P260 the paid invoices and any other documentation necessary to verify that the Mortgagee made the payment for the final bill.
If the Mortgagee fails to pay utility bills, HUD, at its sole discretion, may:
- issue a Notice of Non-Compliance and demand payment from the Mortgagee in an amount sufficient to satisfy any liens or encumbrances, including penalties and interest, which prevent or delay a sale; or
- Reconvey the Property to the Mortgagee.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. 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 III.A.2.v.iv(D) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh