Are property inspections required for borrowers participating in a Special Forbearance (SFB)-Unemployment Agreement?

The Mortgagee must conduct any review it deems necessary, including a property inspection, when the Mortgagee has reason to believe that the physical conditions of the Property adversely impact the Borrower’s use or ability to support the debt as follows:
  • financial information provided by the Borrower shows large expenses for property maintenance;
  • the Mortgagee receives notice from local government or other third parties regarding property condition; or
  • the Property may be affected by a disaster event in the area.
If significant maintenance costs contributed to the Default or are affecting the Borrower’s ability to make payments under the Mortgage or Special Forbearance (SFB)-Unemployment Agreement, the Mortgagee may provide in the SFB-Unemployment Agreement a period of mortgage forbearance during which repairs specified in the agreement will be completed at the Borrower’s expense.
 
Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.
 
For policy information see Handbook 4000.1 III.A.2.k.iv.(B)(3) 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-05202