The Mortgagee may consider Loss Mitigation Options other than the Deed-in-Lieu (DIL) Option for those Borrowers who meet the eligibility requirements for policy exceptions listed in the Exceptions to the FHA Policy Limiting the Number of Mortgages per Borrower section (II.A.1.b.iii(2)(c)) of Handbook 4000.1.
The Mortgagee must document in the Claim Review File the justification for any exceptions for Borrowers with multiple FHA-insured Mortgages.
Non-Borrowers that Acquired Title through an Exempted Transfer
The Mortgagee may consider for Home Retention Options a non-borrower who acquires title to a Property securing an FHA-insured Mortgage if the mortgage is not due and payable pursuant to the Garn-St. Germain Depository Institutions Act, and that the non-borrower:
* will occupy the home as a Principal Residence;
* submits to a credit review;
* meets financial criteria for loss mitigation assistance; and
* is willing to assume personal liability for repayment of the Mortgage in accordance with the agreed loss mitigation terms.
Non-Borrowers that Acquired Title NOT through an Exempted Transfer
The Mortgagee may consider for loss mitigation a non-borrower who is not covered by an exempted transfer under the Garn-St. Germain Depository Institutions Act and who acquired title but does not hold sole title to the Property as follows:
* the non-borrower will be added as a Borrower; and
* the non-borrower will be considered for loss mitigation with the cooperation and approval of the existing Borrowers.
Co-Insured Mortgages
The Mortgagee must not offer any Loss Mitigation Option other than the Informal or Formal Forbearance, or Special Forbearance (SFB)-Unemployment Options on co-insured Mortgages until the 60th payment has been received.
Vacant or Abandoned Properties
The Mortgagee may consider Non-Occupant Borrowers for Home Disposition Options only when the Properties have been recently vacated by circumstances related to the Default.
The Mortgagee must document these circumstances relating to the vacancy in the Claim Review File.
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.
For more information see Handbook 4000.1 III.A.2.j.ii(A)(4) and IV.A.1.c. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh