Unless otherwise required by statute or jurisdiction, mortgagees must use the Commissioner’s Adjusted Fair Market Value (CAFMV) for all foreclosure sales and Post-Foreclosure Sales Efforts for mortgages in default when all of the following criteria are met:
A. The FHA mortgage insurance is currently active for the FHA Case Number;
B. The FHA-insured loan is not currently subject to an indemnification;
C. The mortgagee has worked with the borrower to exhaust all home retention options and has determined that the borrower’s case does not meet the criteria for a Home Disposition Option, or the mortgagee has been unable to locate the borrower, and the property is vacant or has been abandoned by the borrower;
D. The property has no surchargeable damage; and
E. The mortgagee’s projected conveyance claim amount would be equal to or greater than the CAFMV.
Note: FHA is permitting, but not requiring, the use of CAFMV by Small Servicers, defined in
12 CFR 1026.41(e)(4)(ii).
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to firstname.lastname@example.org. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
HUD’s standard for the CAFMV is located in HB 4000.1, III.A.2.p.ii.(B) at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh