If a Mortgagee fails to comply with HUD’s conveyance requirements, HUD may:
- Reconvey title to the Mortgagee;
- cancel the Mortgagee’s claim for insurance benefits; and
- request reimbursement for expenses incurred for acquisition, holding and Reconveyance, less any income received from the Property, from the date the deed to HUD was filed for record to the date of Reconveyance.
Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.
For policy information see Handbook 4000.1 Section III.A.2.t.ix. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh