Are Mortgagees required to collect rents from tenants who occupy properties undergoing foreclosure?

Mortgagees must attempt to collect rents payable under bona fide leases and tenancies and, in the event of Default, to take possessory action under the rental contract terms and applicable law.

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

Guidance for rents under bona fide leases is located in HB 4000.1 III.A.2.s.v. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

 


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05153